GST Tax Slabs Rates List 2024

4 GST Tax Slabs Rates List in India for Various Goods and Services

4 GST Tax Slabs Rates List in India for Various Goods and Services

Last Updated : Aug. 8, 2022, 11:05 a.m.

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List of Various GST Tax Slabs Rates in India April 2024

No Tax

  • Goods – No taxes will be levied on goods like sanitary napkins, deities made of stone, marbles or wood, Rakhis without any precious metals like gold, silver, raw material used in brooms, Salt, sanitary napkins, whole food materials, eggs, newspaper, statues of god and goddesses made of stone, children’s picture book and colour book.
  • Services – All hotels and lodges who carry a tariff below INR 1,000 are exempted from taxes under GST. The list also includes IMM courses and bank charges on savings account.

GST Tax Slab of 5%

  • Goods – Spices, chapati, edible oil, bread, pizza bread, fish, Khakhra, tea and coffee (but not instant coffee), baby food, sugar, nuts, sweets, vegetables, non-brand namkeen, atta chakki, coal, biogas, fertilisers, medicines and drugs (for live-saving incidents), incense sticks (agarbatti).
  • Services – aircraft lease, crude and petroleum transport, takeaway food, economy flight tickets, paper printing, tailoring, AC cabs and taxi, AC and Non-AC restaurants (with a turnover of INR 50 lakhs).

GST Tax Slab of 12%

  • Goods – Frozen meat, meat sausages, juices, sauces (not salad dressing), cakes, pickles, boiled sugar, products made of milk such as (Ghee, Butter and Cheese), drinking and coconut water.
  • Services – Business class flight tickets, movie tickets, hotel stay (Price < INR 7,500), eating and drinking outlet (with no liquor license)

GST Tax Slab of 18%

  • Goods – Mineral water, raw pasta, biscuits, pastries, soup, cornflakes, curry powder and paste, preserved vegetables, food mixes and other supplements and condiments, refined sugar, Cocoa butter, Ice cream, edibles like chocolate as well as chewing gum.
  • Services – Movie tickets (> INR 100), Hotel accommodation (>= INR 7,500), Daily room (from INR 2,500 and 5,000), restaurants located in hotels (> INR 7,500 daily tariff), telecom and other IT services, catering.

GST Tax Slab of 28%

  • Goods – Aerated water (with or without added sugar), instant coffee, chocolates (with no cocoa), protein, coffee and custard concentrates, molasses and sugar syrup,
  • Services – Hotel stay wherein bill is > INR 7,500, gambling, go-karting, ballet, club services such as casinos, theme parks, amusement parks, and joy rides.

4 GST Tax Slab Rates List for Different Goods

5% GST Tax Slab Items 12% GST Tax Slab Items 18% GST Tax Slab Items 28% GST Tax Slab Items
  • Sugar
  • Tea
  • Sliced Mango
  • Ayurvedic Medicine
  • Skimmed milk
  • ICDS Food Packages
  • Milk food for babies
  • Edible oils
  • Khakra & Plain Chapati
  • Roasted coffee beans
  • Packed paneer
  • Frozen vegetables
  • Cashew nuts
  • Spices
  • Unbranded Namkeen
  • Pizza bread
  • Rusk
  • Sabudana
  • Fish fillet
  • Packaged food items
  • Fertilizers
  • Footwear upto ₹1,000
  • Apparels upto₹1,000
  • Real Zari
  • Agarbatti
  • Domestic LPG
  • Straw, basketware articles, esparto
  • Velvet Fabric (No Input Tax Refund)
  • Tamarind Kernel Powder
  • Mehndi Paste
  • Scientific and technical instruments
  • Floor covering
  • Plastic Waste
  • Satellites and payloads
  • Ethanol- Solid biofuel pellets
  • Handmade carpets and other handmade textile floor coverings
  • Hand-made braids and ornamental trimming in the piece
  • Coir mats
  • Rubber Waste
  • Matting
  • Insulin
  • Paper Waste
  • Medicines
  • Stent
  • Braille watches
  • Braille typewriters
  • Cullet or Scrap of Glass
  • Braille paper
  • Hearing aids
  • Postage stamps
  • Biomass Briquettes
  • Revenue stamps
  • First day covers
  • Special flights for pilgrims (Economy Class)
  • Stamp-post marks
  • Ghee
  • Butter
  • Fruit juice
  • Almonds
  • Sugar boiled confectionery
  • 20-litre packaged drinking water bottle
  • Drip Irrigation System
  • Biodiesel and select biopesticides
  • Mechanical Sprayers
  • Handbags including pouches and purses
  • Jewellery box
  • Wooden frames for painting
  • Photographs
  • mirrors etc
  • Ornamental framed mirrors
  • Brass Kerosene Pressure Stove
  • Art ware of iron
  • Hearing aid parts and accessories
  • Bamboo wood building joinery
  • Packed coconut water
  • Fertilizer-grade Phosphoric Acid
  • Preparations of vegetables
  • Fruits
  • Nuts
  • Pickle
  • Murabba
  • Chutney
  • Jam
  • Jelly
  • Namkeen
  • Bhujia
  • Frozen meat products
  • Packaged dry fruits
  • Animal fat sausage
  • Non-AC restaurants
  • State-run lotteries
  • Exercise books
  • Notebooks
  • Work contracts
  • Apparel above ₹1000
  • Tooth powder
  • Spoons
  • Umbrella
  • Cake servers
  • Sewing machine
  • Ladles
  • Forks
  • Tongs
  • Skimmers
  • Fish knives
  • Mobile
  • Manmade Yarn
  • Diagnostic kits & reagents
  • Nil Sewing Thread of manmade filaments
  • Sewing Thread of Manmade Staple Fibres
  • Glasses for corrective spectacles and flint buttons
  • Special flights for pilgrims (Business Class)
  • Movie tickets priced below ₹100
  • Playing cards
  • Ludo
  • Carom board
  • Chess board
  • Biscuits
  • Flavoured refined sugar
  • Movie tickets priced above ₹100
  • Monitors and television screens
  • Tyres
  • Power banks of lithium ion batteries, small sport related items, video games, carriage accessories for disabled
  • Washing machine
  • Vacuum cleaner
  • Cakes
  • Pastries
  • Preserved vegetables
  • Soups
  • Suitcase
  • Vanity case
  • Briefcase
  • Chocolates
  • Ice cream
  • Chewing Gum/Bubble Gum
  • Pasta
  • Instant food mixes
  • Corn flakes
  • Curry paste
  • Mayonnaise
  • Salad dressings
  • Mixed condiments
  • Mixed seasonings
  • Branded garments
  • Footwear priced above ₹500
  • Headgear
  • Soap
  • Hair oil
  • Deodorants
  • Preparation for facial make-up
  • Shaving
  • After-shave items
  • Shampoo
  • Washing Powder
  • Detergent
  • toothpaste
  • toiletries
  • kajal pencil sticks
  • tissues
  • computers
  • printed
  • circuits
  • printers
  • monitors
  • camera
  • speakers
  • CCTV
  • Electrical transformer
  • Optical fiber
  • Bidi Patta
  • Mineral water
  • Tissues
  • Poster Colours
  • Modelling Paste for Children
  • Envelopes
  • Some parts of pumps
  • Steel products
  • Plain Shaft Bearing
  • Stationery items like clips
  • Washing and cleaning preparations
  • Paint
  • Water Heaters
  • Hair Shavers
  • Hair Curlers
  • Hair Dryers
  • Scent Sprays
  • Lithium-ion batteries
  • Varnishes
  • Safety glass
  • Glassware
  • Sheets
  • Fans
  • Light fitting
  • Compressors
  • Pumps
  • Sanitaryware
  • Leather clothing
  • Wrist watches
  • Stoves
  • Cutlery
  • Cookers
  • Juicer Mixer
  • Telescope
  • Binoculars
  • Googles
  • Artificial flowers
  • Artificial fruits
  • Follage
  • Physical exercise equipment
  • Musical instruments and their parts
  • Electrical boards, panels and wires
  • TV
  • AC
  • Fridge
  • Razor and razor blades
  • Multi-functional printers
  • Cartridges
  • Aluminium frames
  • Windows
  • Door
  • Water Coolers
  • Water Heater
  • Some Diesel engine parts
  • Stones used in flooring, marble & granite
  • Weighing machinery (non-electrical or electronic)
  • Aluminium foil Furniture
  • Bamboo
  • Bio-fuels Powered Buses
  • Cigarette Fillter Rods
  • Second-hand large and medium cars and SUVs
  • Padding pools Swimming pools
  • Waffles and wafers coated with chocolate
  • Sunscreen
  • Dye
  • Hair clippers
  • Ceramic tiles
  • Wallpaper
  • Dishwasher
  • Automobiles Motorcycles
  • Aircraft for personal use
  • Pan masala
  • Tobacoo
  • Cigarette
  • Bidis
  • Cement
  • Yachts
  • Weighing machine ATM
  • Vending machines
  • Aerated water

4 GST Tax Slab Rates List for Different Services

GST Tax Slabs Services
  • AC and Non AC Restaurants
  • Takeaway Food
  • Restaurants in hotels with a room tariff less than ₹7,500 (no input credit for these restaurants)
  • Transport services like railways and airways
  • Transport of passengers by air in economy class
  • Supply of tour operators’ services
  • Selling of space for advertisement in print media
  • Small restaurants with turnover of Rs. 50 Lakhs
  • Transport of passengers by motor cabs and radio taxis
  • Tailoring services
  • Small house-keeping service providers (No input credit available)
  • Crude and petroleum product transportation
  • Job work for footwear and leather goods
  • Business class air tickets
  • Hotels, inns, guest houses, which have a room tariff of Rs.1,000 and above but less than Rs.7,500 per room per night
  • Metro and monorail construction
  • Mining and drilling for crude or natural gas
  • Common effluent treatment plants
  • Restaurants in hotels with tariff at over ₹7,500
  • Actual bill of hotel stay below ₹7,500
    Outdoor Catering (input tax credit to be available)
  • Hotels, inns, guest houses, which have a room tariff of Rs.2500 and above but less than Rs.5000 per room per night
  • IT services
  • Telecom services
  • Theme parks, water parks and alike
  • Race club betting & gambling
  • Actual bill of hotel stay above ₹7,500
  • Five-star Hotels
  • Entertainment & Cinema
  • Hotels, inns, guest houses, which have a room tariff of Rs.5000 and above per room per night
  • Hotel accommodation with a transaction value of 1,000 or less per day
  • Group insurance schemes for paramilitary forces under the Home Affairs Ministry

41st GST Council Meeting Updates

The 41st GST Council, which was chaired by the Finance Minister Nirmala Sitharaman on 27th August 2020, witnessed a discussion between the centre and states regarding compensating states for the shortfall in revenue. According to the Central Goods and Services Act, the centre has guaranteed payment for the loss of revenue in the first five years of the GST implementation date i.e. 1st July 2017. The calculation of the shortfall is made at an assumed 14% annual growth in GST collections by states over 2015-16.

As the COVID-19 pandemic has decreased the compensation cess for states over the last few months, the centre has expressed its inability to compensate states. But it has given them an option of borrowing from the market. The centre has given states the option of getting loans through the Reserve Bank of India (RBI) for the deficit arising due to the implementation of GST. The gap also exists due to the problems caused by the COVID pandemic. However, states have asked the centre to give them 7 days to think about the option, which would be available only during the current year. The government will review the situation next year.

According to the Revenue Secretary, the GST shortfall in FY 21 is INR 2.35 lakh crore. Of this, only INR 97,000 crore is due to the implementation of GST. The remaining amount is due to the pandemic.

All you need to know about the 39th GST Council Meeting – Increased GST Rate on Mobile Phones and much more!

In the 39th meeting of the GST council headed by the Finance Minister Nirmala Sitharaman on March 14, 2020, several major decisions were announced. The biggest among all is the hike of GST on Mobile phones and a few specified parts. It will now attract a GST of 18% which was earlier in the GST tax slab of 12%. This hike in the GST will make mobile phones costlier than before if mobile industry players decide to pass this increased GST rate to the end-users.

Apart from this, the GST Council has also decided to rationalize the tax on both handmade and machine-made matchsticks to 12%. The council has also decreased GST on Maintenance, Repair, and Overhaul (MRO) Services of the Aircrafts to 5% from the earlier 18%. The council hopes it would help in setting up more MRO services in India. All of these changes related to rates will be effective from April 1, 2020.

You can look at all the major decisions taken by the GST council below.

  • Mobile phones and a few specified parts will attract a GST of 18% now from the earlier GST of 12%.
  • Both handmade and machine-made matchsticks will now have a GST of 12% which was fixed at 5% and 18% of GST tax earlier. Now, it is rationalize for both of them.
  • GST Council also reduced GST on MRO services of the Aircrafts to 5% from 18%. This move will certainly help in encouraging more companies to set up their services in India.
  • The due date for filing the annual return GSTR-9 and reconciliation statement GSTR-9C for all the small businesses with an annual turnover below 5 crores to June 31 from March 31. This move might help small businesses in focusing only on monthly and quarterly return filing.
  • Taxpayers with annual turnovers of less than 2 crores won’t have to pay any late fee for the delayed filing of annual returns and reconciliation statements for the financial year 2017-18 and 2018-19 as the GST Council has decided to waive it off completely for them.
  • The GST Council has also decided to extend the dates for the implementation of QR code and e-invoicing to October 1, 2020. It will surely give the industry enough time to keep their system in place by this time.
  • The council has also approved a new facility called ‘Know Your Supplier’. This facility will help every taxpayer in knowing basic information about the supplier they deal with like their GST number, and if they have filed returns and other details.
  • The Finance Minister also ensures that by July 2020, a better GSTN system will be in place by Infosys. It will include increased capacity for hardware and more skilled manpower.

GST Council, in a first, Shifted Lotteries to Highest Slab

In the 38th meeting of the GST council, the tax slab of lotteries of both state-run or state-authorized, shifted to the uniform 28% across the country. This decision was made through a vote by the members of the GST Council which was the first time in the history of all meetings of the council. Because, till now, all the decisions were made by the use of consensus which was challenged by Kerala’s Finance Minister Thomas Isaac.

The uniform rate in the lottery will be effective from next year, March 1, 2020, across the country. Apart from this, there were no changes made in the rate of any goods and services despite the huge pressure of increasing the revenues amid the shortfall all around. You can have a look at the major decisions taken at the GST Council Meeting, below.

  • GST Council decided to put lotteries in the highest tax slab of 28% across India. This decision was taken through voting for the first time in the history of all meetings of the GST Council.
  • During the concluded voting process, 21 states voted in favor of it, and seven against it.
  • The annual date of GSTR 9 filling to be extended to January 31, 2020, from the previous date of December 31, 2019.
  • All the taxpayers who have not filed the GSTR 1 from the July 2017 to November 2019, will not have any late fee if the return is filed by January 10, 2020.
  • The GST Council also decided to levy tax rate on woven and non-woven bags to the tax slab of 18%.
  • The council also discussed on ways to increase the use of technology through which they can fill the revenue leakage.
  • The GST Council also decided to provide an exempt on the long-term lease given to facilitate setting up of Industrial parks.

No GST on Low Cost Hotel Accommodation, Jewellery Exports – The Highlights of the 37th GST Council Meeting

The 37th GST Council Meeting held in Goa on 20th September 2019 has come out with significant announcements that would hopefully lift the economy from the shambles of the lowest GDP of 5% recorded in the last 6 years. Take a look at the announcements made.

  • No GST on hotel accommodation with a transaction value of INR 1,000 or less per day. Transactions above INR 1,000-7,500 and above INR 7,500 will attract 12% and 18% GST, respectively.
  • No GST to be levied on group insurance schemes for paramilitary forces under the Home Affairs Ministry
  • Specified defence goods not manufactured in India will be kept out of the purview of GST
  • Zero GST on jewellery exports
  • A lower 12% cess on 1200 cc petrol and 1500 cc diesel vehicles with a carrying capacity up to 13 people
  • Tax rate on cut and polished semi precious stones slashed to 0.25% from 3%
  • Job work services related to diamonds will now attract a lower rate of 1.5% from the earlier 5%
  • Machine job works in engineering industry will be levied at a lower tax rate of 12% from the previous 18%

But the meeting was not all about rate cuts. The council hiked the tax rate on caffeinated beverages to 28% from the previous 12% with a 12% compensation cess. Further, the railway wagon and coaches will also cost more with the rate elevated to 12% from 5% earlier.

GST Rate on Electric Vehicles Slashed from 12% to 5%

The 37th GST Council, which met on 27th July, 2019, has decided to slash the GST rate on electric vehicles to 5% from the existing 12%. In addition, the council also cut the tax rate on EV charges to 5% from 18% at present. The new rates will come into effect from August 1, 2019. Local authorities hiring local buses having a carrying capacity of more than 12 passengers would be exempted from paying the GST.

Only 28 Items Remaining in Top GST Slab of 28%

The GST Council in its meeting held on December 22, 2018, decided to remove 6 items out of the top GST slab of 28%. With the latest development, the number of items in the top slab comes down to 28, including luxury goods, a few automobile and cement items.

The GST rates on special flights for pilgrims have come down to 5% and 12% for economy and business class, respectively. Movie tickets priced below INR 100 would now attract 12% GST, falling from the previous 18% rate. On the other hand, tickets priced above INR 100 would be charged at 18%, falling from the top slab of 28%. Power bank of lithium ion batteries, small sport related items, carriage accessories for disabled and video games are brought down from the top slab to the immediate below 18%. Monitors and television screens, as well as tyres would come with a GST levy of 18%, which was earlier sitting in 28%. IMM courses and bank charges with respect to savings account, Jan Dhan Yojana are exempted from the GST levy.

GST Council Cuts Rates to Lift Consumer Spends in Monsoon

Get ready to enjoy the monsoon bonanza as the GST Council has reduced the tax rates on 191 goods, leaving just 35 items in the highest 28% bracket. The new GST rates would be implemented from July 27, making several general-use items such as TV, Washing Machine, Refrigerator cheaper. Not only this, conceding to a year-long-demand, the Council has also decided to keep sanitary napkins under the exempted category.

However, over the last one year, the Council has slashed the rates of 191 items in the 28% category. Moreover, the 35 goods, which will be left in the highest slab also include cement, automobile parts, tyres, automobile equipment, motor vehicles, yachts, aircraft, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.

26TH GST Council Meet Approves e-way Bill System from April 1

The 26th GST Council meet, which took place on Saturday, approved the introduction of e-way Bill system for inter-state movement of goods worth more than 50,000, from April 1, 2018. However, the council failed to reach a consensus on the proposed simplification of returns filing process. The ongoing filing returns system of summary return GSTR-3B and sales return GSTR-1 has got extended till June. The Finance Minister Arun Jaitley said, the Group of Ministers entrusted with the task of resolving IT related issues will work out ways to simply the return process. Besides, tax exemption for exporters has been extended by 6 months.

The council has decided to implement the e-wallet scheme, which gives refunds to exporters under GST, by October 1, 2018. Similarly, merchant exporters can pay 0.1% tax on goods procured for export and get a refund for the same. The council has also delayed the provision for TDS deduction and TCS collection by e-commerce operators till June 30, 2018. However, the decision to bring extra neutral alcohol under GST got deferred as states and Centre failed to reach a consensus on the same.

GST Rate Cut for Various Goods and Services

Days before the Union Budget 2018-2019, the GST Council in its 25th meeting on Thursday has slashed the rates of 29 items and 53 categories of services. The Council, was headed by the Finance Minister Arun Jaitley and has decided the new rates will soon be effective from 25th January 2018. The apex decision making body of the tax has decided to reduce the prices of old and used motor vehicles to 12%, medium & large cars and SUVs from 28% to 18%. LPG supply to domestic household consumers by private LPG distributor will come down to 5% from 18% slab. Not only this, the rate on bio fuel powered buses has also been reduced to 18% from 28%. Along with this, the rate of diamonds and precious stones has been cut from 3% to 0.25%. Apart from this, the rates of few agricultural products have also been reduced while keeping 29 handicraft items in 0% slab.

However, if we talk about the services, the Council has reduced the tax rate on tailoring service from 18% to 5%. In addition to this, admission to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet will also come down to 18% from 28% of tax slab.

GST Return Filing Now in One Step

Another update which grabbed the attention of all is the announcement on GST Return Filing, making the process simpler for businesses. The Union Finance Minister said ”One key issue before the council was simplification of the return process.” Moreover, this new GST one-step plan, which is still in the talks, seems to revolve around on three forms-GSTR1, GSTR2 and GSTR3 and will replace them with GSTR3B , initially with uploading of a supply invoice. An official in the meeting also stated that this may be further simplified with just the supply invoice, which needs to be uploaded along with deciding the return filing frequency. If we talk more about the same, the taxes can be deposited on the basis of an invoice and if any mismatch takes place between buyer and seller invoices, an explanation can be sought.

Here are the Highlights:

  • GST Rates slashed for 29 items and 53 services
  • 29 Handicraft items are in 0% slab. Rates of few agricultural products have also reduced
  • The testing of E-way bill continues till 25th January 2018, loading of the same is compulsory from 1st February 2018
  • 3B Return Filing may continue
  • 15 States have agreed on Intra-State E-way Bill
  • Decision on Real Estate and petroleum products will be taken on next meeting
  • A collection ofINR 307 crore under composite scheme
  • The integrated GST collection ofINR 35,00 crore will be divided between the Centre and the States

Updated New GST Tax Rates

The 2-day GST Council meeting, which kicked off on November 9 in Guwahati, the capital city of Assam, has decided to lower the tax rates of 177 items falling under the highest slab of 28% to 18%, in line with the expectations.

Updated New GST Tax Rates of 177 out of 227 Items Reduced to 18% from 28% Slab

Currently, 227 items lie under the 28% slab. Now with the latest announcement, only 50 would remain in 28% club. Confirming the news, Sushil Kumar Modi, the GST Council member, stated that tax rates on numerous items under 28% rate have come down to 18%, thus bringing the total number of items in the top slab to just 50. The items which have moved to 18% regime include chocolates, beauty products, shaving cream, aftershave kits, chewing gum, marble, granite, handmade furniture, plastic products, among others.

Eating Out Becomes Cheaper as GST Tax Rates Reduced from 18% to 5% Slab

Here comes the good news for all the foodies out! The GST Council on Friday has slashed the rates for both air-conditioned and non-air -conditioned restaurants to 5% without input tax credit which will be effective from 15 November. Earlier, the Council had pegged the rates for air-conditioned and non-air-conditioned eating joints and those with a liquor license at 18% and 12% respectively. However, the rates will remain unchanged to 18% for outdoor catering and restaurants situated inside the hotel premises with tariffs of INR 7,500 and above along with the benefit of input tax credit. If experts are to be believed, the move of paying less for eating out and ordering food is a rejoice for consumers.

What is GST?

GST stands for Goods and Service Tax, which by virtue of its launch, has replaced the previous structure of multiple taxes levied by the state and central government. It is a consumption based indirect tax which is charged on sale, manufacturing and consumption on goods and services at the national level. Exports and direct taxes like income tax, corporate tax and capital gain tax will not be affected by GST. The much-awaited GST has a dual tax system comprising of –

  • Central GST or CGST – To be charged by the central government.
  • State GST or SGST – To be charged by the state government.
  • Integrated GST or IGST – To be charged by central government on the inter-state supply of various goods and services.

Impact of GST

Since India has different GST tax rates compared to a single GST rate in most prosperous nations across the globe, the national economy would undergo a major shift from the times of multiple taxes. From a common man to the riches, the word GST will have a significant bearing. While some goods and services would become cheaper, others may just take out more from the pocket of the consumers. The game changer, however, could be the input tax credit that the manufacturers can avail, which hopefully should benefit the consumers at large. The manufacturers can claim tax credit for the raw materials they procure, as well as for using the services like advertising, marketing and training. Similarly, the service providers can avail the credit for the goods they procure.

Relief for Exporters

There is also a good news on the outward shipment as exporters would be exempted from paying IGST for 6 months. Adding more impetus to the Digital India Mission, the council has announced to develop e-wallet gateway and introduce it by April 1 next year. The refund cheques for July and August exports would be processed by October 10 and October 18, respectively. The government will deposit a notional amount as an advance refund in e-wallets for exporters.

On the other hand, Small Medium Enterprises (SMEs), with an annual turnover of INR 1.5 crore, are allowed to file quarterly returns.

Composition Scheme Widened

The composition scheme net has been widened to taxpayers with a turnover of up to INR 1 crore from the existing limit of INR 75 lakh. Under the said scheme, the manufacturing companies and restaurants will have to pay 2% and 5% tax, respectively.

When Did GST Arrive in India?

Finally, the landmark event in India’s taxation history arrived on July 1, 2017, when GST (Goods and Services Tax) became the reality. This is the biggest reform launched by the Prime Minister Narendra Modi in the Central Hall of Parliament in the wee hours of 1st July. Jammu & Kashmir, previously, was not the part of the GST regime. But with the state assembly passing the bill despite a boycott by the opposition, the GST in J&K has become a reality now. The GST scheme consists of a four slab structure under which the proposed goods and services will be taxed accordingly. The four slabs are 5%, 12%, 18% and 28%. The five services, which feature a taxation of 28% under GST, include five-star hotels, racing, movie tickets and betting on casinos and racing. Education and healthcare are exempted from the tax regime and will continue to remain unaffected. The majority of the services form the part of the 18% tax slab. The scheme is expected to have a mixed effect on the industry as the impact of the same will be visible in the upcoming few years.

GST Council Slashes Rates for Items in October

The Finance Minister Arun Jaitley has announced a growing list of rate reductions. The unbranded ayurvedic medicines now come under the tax slab of 5%, down from 12%. Gas stove and consumer articles have been moved to a lower tax bracket from the high of 28%. Giving a relief to the artisans, the GST Council has cut the rate of some handicraft items to 5% from the existing 12%. The rates of yarn and clips are also slashed to 12% and 18% respectively, providing a fillip to the country’s textile industry. Even the rates for several job work items are reduced to 5% from 12%. Meanwhile, the council has granted an in-principle approval to bringing down the rates of AC restaurants to 12% from 18% at present.

The GST Council meeting, which took place between the Union and State Finance Ministry Officials on October 6, has come out with a slew of relief measures for the businesses and public in general. In order to provide a big festive cheer here’s came an announcement on jewellery purchases exceeding INR 50,000 won’t require PAN Card. However, the biggest of all was the announcement of reducing the GST rates of 27 products and a few services. The Council headed by Jaitley decided to continue the two pre-GST era schemes, allowing duty-free sourcing of materials for export production till March, 2018.

GST Council Slashes Rates for More than 40 Items in September

The GST Council, in its meeting on September 9, 2017, decided to lower the rates of more than 40 items. These items are walnut, clay idols custard powder, corduroy fabric, saree fall, dhoop batti, raincoat, rubber bands, idli dosa batter, prayer beads, computer monitors, kitchenware, table, and others. Meanwhile, the Khadi sold at KVIC outlets are exempted from GST levy.

Hard for Branded Food Businesses to Evade GST

The GST Council meeting, which spanned for hours, came with a decision to impose 5% tax on branded food businesses registered on May 15, 2017. So even if these businesses de-register later, they would have to pay 5% tax.

Boost for Small Handicraft Traders

Handicraft traders, who sell their products to other states, won’t have to register for GST in case the turnover is belowINR 20 lakhs.

Cess Hiked on Cars after GST

The cess on motor vehicles such as mid, large and sports utility vehicles (SUVs) is also hiked by the council to the tune of 2%, 5%and 7%, respectively. So, the overall incidence of the tax is likely to be 45% in the case of mid-size cars, 48% for large cars and 50% for SUVs. However, the council maintained a status quo on hybrid and small cars.

64% File GST Returns in July Government Collects INR 92,000 crore

64% population filed their ITRs in the month of July, resulting in a collection of INR 92,283 crore received by Centre and State Government as Goods and Service Tax (GST). In the first month of its roll out, this indirect tax regime exceeded the Union and State Government’s target ofINR 91,000 crore. Finance Minister, Arun Jaitley in his statement on Tuesday said that a total number of 64.42% of the registered taxpayers, excluding composition dealers and registrants in August, filed their returns in the month of July under GST. He also stated that ‘’we have crossed the red line so far as tax targets are concerned.’’

Talking about the targets in the annual budget, the Central Government’s July tax revenue should have beenINR 48,000 crore and that of States atINR 43,000 crore, assuming 14% growth each in 2016-17 and 2017-18 over the 2015-16 revenues of the states. Thus, the combined kitty comes toINR 91,000, he said, adding that they have ‘exceeded the target.’ With respect to GST collections affecting the fiscal deficit based on the July tax numbers, he said, ‘’It is too early to comment.’’

Explaining the reason to the masses, he said now that the internal estimate had been breached in the first month of GST implementation, it meant that many businesses that were not paying the taxes are now coming into the net.

If we look at the calculation ofINR 92,283 crore,INR 7,198 crore came from the cess, which will go to the states as compensation. Of the remaining amount,INR 14,894 crore has been collected as Central GST (CGST),INR 22,722 crore as state GST (SGST) andINR 47,469 crore as integrated GST (IGST) , includingINR 20,964 crore as IGST from imports. However, the exact revenue figures of Central and State Governments will be known after the cross utilisation report of IGST for the payment of SGST and CGST that will be prepared by GSTN (GST Network) by 31 August.

Out of 59.57 lakh registrants, 38.38 lakh people have filed their returns in July, making a total of 64.42 per cent. Till date, 72.33 lakh taxpayers have migrated to the new GSTN system, out of which 58.53 lakh have completed all the required formalities. Those who haven’t paid the GST, they have to bear a late filing penalty ofINR 100 per day for CGST and SGST each. They can also file the taxes by paying an interest of 18% yearly. Tax analysts noted that many companies were not able to file their input tax credit due to some issues with TRAN-1 Form, which was required to be filled for availing the transactional credit.

Which Indirect Taxes Would GST Not Subsume?

Yes, the GST is expected to subsume a bundle of indirect taxes. However, a few of them would be out of GST ambit. These include-

  • Export Duty
  • Basic Customs Duty
  • Toll Tax
  • Stamp Duty
  • Property Tax
  • Road & Passenger Tax
  • Electricity Duty

Loans to Cost a Little More

Those applying for a personal loan, home loan and other types of credit facility would have to shell out 3% more tax on the processing fee and other charges payable on the loan in the advent of 18% GST rate implementation. Previously, a 15% service tax was chargeable on the same.

GST Effect on Personal Loan

In the case of a personal loan, the processing fee can be anywhere between 1%-2% of the loan amount. The fee so arrived will be under the purview of 18% GST. So, if the processing fee comes out to beINR 20,000, the GST of INR 3,600 would be applicable. The same rate will be applicable on prepayment which incurs a fee of 2%-5% of the outstanding balance on a given date.

Apply for Personal Loan After GST

GST Effect on Home Loan

The processing fee of a home loan is somewhere between 0.25%-1% of the loan amount sanctioned. On the fee amount, a GST tax rate of 18% would be applicable. Prepayment, however, can be free of cost if taken on a floating basis. On a fixed rate loan, a fee of 2%-3% of the outstanding loan plus 18% GST would be charged.

Apply for Home Loan Post GST

GST Effect on Car Loan

To get the dream car home on a loan, a processing fee at 1%-2% of the loan amount would be debited at the time of application. In addition, a tax of 18% on the fee amount would be charged from a borrower. Prepayment, on the other hand, bears a penalty of 2%-5% of the outstanding amount. Beyond which, the same tax rate of 18% will apply.

Apply for Car Loan After GST

Big Breakthrough for Small Traders & Manufacturers Under GST Composition Scheme

The Council also decided to allow all the small traders, restaurants and manufacturers with a turnover of INR 75 Lakhs to opt for a composition scheme. This move comes as a big respite to the small business owners who will now be able to opt for a composition scheme and hence pay taxes at 1-5 percent. The government expects to strengthen the small and medium enterprises through this step. The limit for the same is INR 50 Lakhs earlier. Under this scheme, the small business owners have the provision to pay 1-5% GST rate on the annual sales they make without any tax credits.

GST Impact on Companies- Reprint Revised MRP or Face Jail Term, Warns Govt

In what could safeguard the interests of consumers at large, the Union Consumer Affairs Minister Ram Vilas Paswan has taken a hard stance on the companies saying they must reprint the revised MRP post-GST tax rates. Failing to do so will attract penalty and even the jail term. Let’s see how these punishments stack up.

  • First-time offence would attract a penalty of INR 25,000
  • Second-time violation of the norm would lead to a penalty of INR 50,000
  • Third-time violation would put before a penalty of INR 1 lakh or even the jail term

This was all about the tax rates that are now applicable on various goods and services as per GST and the compliance to be followed by the companies. But what about filing the GST returns? It is equally important to know that as well. So, stay glued folks, as a comprehensive list of information pertaining to filing GST returns is coming your way.

Cabinet Gives Nod to CGST Refund Scheme

The union cabinet has given its approval to a new metro rail policy scheme to refund Central Goods and Services Tax (CGST) to industrial units located in Uttarakhand, Himachal Pradesh, Jammu & Kashmir and the North-eastern states. The scheme will also ensure changes to strategic disinvestment policy to increase the pace of decision making. The cabinet has earmarked a budgetary allocation of INR 27,413 crore.

The industrial units, via this scheme, can get a refund of 58% on CGST. Finance Minister Arun Jaitley while addressing this comment, “within the framework of the GST Act, each industry will be entitled to its refund mechanism until March 31, 2027”.

Council Extends GST Return Filing Date

The GST Council has also decided to extend the deadline for GST return filing in the wake of heavy load that the GSTN portal is witnessing of late. So, the date of filing GSTR 1, is now October 3rd and 10th for large and small businesses, respectively. The council has also allowed businesses to file GSTR 3B for 4 months till December. The date of filing GSTR 2 and GSTR is October 31st and November 10th, respectively, revealed Revenue Secretary Hasmukh Adhia. He added that GSTR 1, 2,3 filing for August will be communicated soon.

Guidelines to File GST Returns

As it is not clear regarding the rates to be charged for various goods and services, people, especially business persons and small traders are confused as well as scared of the complex procedure of filing the GST Returns. When it comes to GST Returns, a lot of misconceptions regarding the same have created a bad impression of the complexity around it. But, you will be glad to know that filing the GST Returns is an easy procedure. Wanna know how? All you need to do is just read the post further as we have listed below the basics for you.

Those Who Need Not to Bother

If we go by statistics, approximately 80% of the businesses will either don’t need to file the return or file just once in 3 months. Yes, that’s right!

  • Those who are having a turnover below INR 20 Lakh need not to file any return. They don’t need to worry with the GST rollout.
  • Those with a turnover of more than INR 20 Lakh but below INR 75 Lakh, should read this. Why? As they need to file one return in three months, which means four returns in a year.
  • Not only this, the individuals don’t need to give any details of the invoices. However, if someone has opted for a composition scheme, they need to deposit a lump sum amount in the tax without giving much details to the government. All they need to do is just disclose the total turnover.

Form GSTR-1: Those who are having a turnover of more than INR 75 Lakh and are B- to- C enterprise (business to consumer, including most of the retail sector) will need to file one return GSTR-1, disclosing total sales turnover and nothing else.

Form GSTR-2: It is actually not a return, rather a computer generated account of all the invoices as furnished by the suppliers. Here, people don’t need to file any return but make sure that all their business reflects in GSTR-2, which is not a return but the details of the purchases due to which individuals will get their input tax credit. However, GSTR-2 is not supposed to be filed by an individual as it automatically gets generated when the suppliers file their own GSTR-1.Well, you just need to approve the same.

Form GSTR-3: It is also not a return but a combination of GSTR-1 and GSTR-2 and is computer generated. Basically, it gives the summary of the total output tax liability and input tax credit. Moreover, the difference between the two is the final tax liability of the month. It is for your review purpose and if you find all the details being reflected correctly, all you need to do is just approve the same. Thus, you just need to file one return, and the government will send you two computer-generated returns with additional information so that you can check and approve the same.

However, talking about the invoices to be filed under GST, only suppliers to resellers (B2B suppliers) not under the composition scheme have to file invoice-wide details. When it comes to composition scheme (paying tax at a flat rate without input credits), it is available for service providers and manufacturers, enjoying an annual turnover of upto Rs.75 Lakh . For the seamless transition into the new indirect tax regime, the GST Return filing process has been simplified with Form GSTR-3B, containing only summary details. Well, for the acclimatization of the taxpayers with the new tax regime, the same form has been provided to all classes of taxpayers.

GST Return Filing Details

Return for the Month of
Form GSTR-1 Form GSTR-2
Form GSTR-3
July 2017
October 3 for Large Businesses, October 10 for Small Businesses
October 31 November 10
August 2017 20th September instead of 10th September (Previous Scenario). It may change.
25th September instead of 15th September (Previous Scenario). It may change.
20th September (Previous Scenario). It may change.