The Goods and Service Tax (GST) is the most awaited indirect tax in India. Now finally on 18th May 2017, Thursday, The GST council fixed tax rates on 1211 items in 98 categories. The government has kept a large number of items under 18% slab rate. A quick guide to GST rates in 2017.
Image: GST
No Tax - Goods
No tax will be imposed on items like fresh meat, fish chicken, eggs, buttermilk, curd, natural honey, fresh fruits, fresh vegetables, flour besan, bread, prasad, salt, bindi, Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.
No Tax - Services
Hotels and lodges with tariff below 100, grandfathering service has been exempted under GST.
5% Tax - Goods
Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rush, sabudana, kerosene, coal, medicines, stent, lifeboats, will attract a tax of 5%.
5% Tax - Services
Transport Services (Railways, air transport), small restaurants will be under 5% category.
12% Tax - Goods
Frozen meat products, butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, color books, umbrella, sewing machine, cell phones will be under 12 % tax slab.
12% Tax - Services
On AC hotels, Business class air tickets, Fertilisers, work Contracts will fall under 12% GST tax slab.
18% Tax - Goods
Most items are under this tax slab which includes flavored refined sugar, pasta, cornflakes, pastries, and cakes, preserved vegetables, jams, sauces, soups, ice-cream, instant food mixes, mineral water, tissues, envelopes, tampons, notebooks, steel products, printed circuits, camera, speaker, and monitors will fall in 18% GST tax slab
18% Tax - Services
AC hotels that serve liquor, telecom services, IT services, IT services, branded garments and financial services will attract 18 % tax under GST.
28% Tax - Goods
Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weight machine, washing machine, ATM, vending machine, vacuum cleaner, shavers, hair clipper, automobiles, motorcycles, aircraft for personal use, will attract 28% tax slap system under GST
28% Tax - Services
5-start hotels, race club betting, cinema will attract 28% tax slab under GST.
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