India GST Rates in 2017

The Goods and Services Tax has been one of the key things that have caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slabs. The government categorized 1211 items under various tax slabs. Here is a low-down on the tax slab these items would attract. Gold and Rough diamonds do not fall under the current rate slab ambit and will be taxed at 3% and 0.25% respectively.

No Tax Goods & Services – No tax will be imposed on items like Jute, Fresh Meat, Fish chicken, Eggs, Milk, Butter Milk, Curd, Natural Honey, Fresh Fruits and Vegetables, Flour, Besan, Bread, Prasad, Salt, Bindi, Sindoor, Stamps, Newspapers etc. Hotels and Lodges with tariff below Rs 1,000, grandfathering service have been exempted under GST.

5% Goods & Services – Items such as Fish Fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, Coffee, Tea etc. will attract tax of 5%. Transport Services, small restaurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

12% Goods & Services – Apparel above Rs 1000, Frozen meat products, butter, Cheese, Ghee, Dry Fruits in packaged form, Animal Fat, Sausage, Tooth Powder, Ayurvedic Medicines, Umbrella etc. will be under 12% tax slab. Non – AC hotels, business class air ticket, fertilizers, Work Contracts will fall under 12% GST tax slab.

18% Goods & Services – Most items under this tax slab which include Footwear costing more than Rs 500, Biscuits, Flavored refined sugar, Pasta, Cornflakes, Jams, Sauces, Tampons, Camera, Speaker and Monitors etc. AC Hotel that serve liquor, telecom services, IT services, branded garments and financial services will attract 18% tax under GST.

28% Goods & Services – Chewing Gum, Bidis, Pan Masala, Chocolate not containing Cocoa, Hair Shampoo, Ceramic Tiles, Water Heater, Washing Machine, ATM, Vacuum Cleaner, Shavers, Hair Clippers, Automobiles, Motorcycles, Aircraft for personal use etc. will attract 28% tax – the highest under GST system. 5-Star hotels, race club betting, cinema will attract tax 28% tax slab under GST.