GST Rate Structure as approved by the GST Council

GST council has made the much-awaited announcements around tax rates on various categories of goods on day one of a two-day meeting of the said council at Srinagar. There has been a hype around these rates for a while and now these rates are finally in the public domain.

 

As soon as the GST rates were announced a huge wave of curiosity hit across industry and trade bodies. Everyone is evaluating their position as a result of this change. So in this article, we bring you our analysis of these GST rates.

Food Transportation Jewellery Mobile Phone Service Entertainment
Now 12.5% 15% 2% 15% 30%
After 5% 18% 3% 18% 28%

In addition to the above, a few other items were mentioned in the Council’s announcement of rates. These items, and the applicable rates on them are as follows:

  • Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices.
  • The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.
  • Coal to be taxed at 5 percent against current 11.69 per cent.
  • Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction.

In addition to the above, following aspects were also announced:

  • for restaurants serving alcohol, the tax bracket will be 18 per cent
  • education, healthcare are going to be exempted from GST

If you want to know more about the announced rates, please click on the following links. The following files will be downloaded to your computer, and they contain a complete chapter-wise list of the applicable GST rates on goods and services as approved by the GST Council in the May 18th and June 3rd Meeting.

Download Complete Chapter Wise List of GST Rates for Services

Download Complete Chapter Wise List of GST Rates for Goods

For more details, please feel free to reach out to us.



5 Comments

  • Animeah Vashistha

    Sir,
    We are the manufacturer of Rubber Lubricant which is used for the swr pipes installation. It is used for reducing the friction between rubber ring and pvc pipe surface. its is in cream form and soap based. Sir, Can you guide us the gst tax which will be applicable in our case.
    Regrads,
    Animesh Vashistha

  • Sudhir J Tanna

    Please indicate GST applicable tax on Auditing and HSN/ASC codes for the same.

    Thanks & Regards

  • Thanks for sharing valuable information with us. Do service charges or taxes apply to raw materials?

  • A.K. Pandey

    Hi Admin,
    Thanks for sharing this information with us. Your blog contains so much detail information.

Leave a Reply