GST tax rates and slabs in India 2019

GST Tax Structure 2017

The GST council has revised the tax rates under GST as on January 18, 2018. The changes will be effective from January 25, 2018.

GST rates on Goods
Commodities GST RATE
Essential farm produced mass consumption items like milk, cereals, fruits, vegetable, jaggery (gur), food grains, rice and wheat NIL
Common use and mass consumption food items such as spices, tea, coffee, sugar, vegetable/ mustard oil; newsprint, coal and Indian sweets NIL
Silk and jute fibre NIL
Diamond and Precious Stones 0.25%
Gold, Silver 3%
LPG supplied to Household by Private Distributors 5%
Fertilizers, Biogas 5%
Branded atta, wheat, pulses, maida, gram flour (besan) 5%
Railway freight 5%
Pharma (Life saving drugs) 5%
Footwear up to Rs. 500 5%
Cotton and natural fibre 5%
Small Old and Used Motor Vehicles 12%
Packaged foods like pickles, tomato sauce, mustard sauce and fruit preserves 12%
Ayurvedic and homeopathy medicines 12%
Processed foods 12%
Fruit juices, live animals, meats, butter & cheese 12%
Mobile phones 12%
Readymade garments 12%
Computer printers 18%
Footwear above Rs. 500 18%
All FMCG goods like hair oil, soaps, toothpaste and shampoos; chemical and industrial use intermediaries 18%
LPG stoves, military weapons, electronic toys 18%
Pastries, cakes, pasta, ice creams, soups 12%
Man made fibre and yarn 18%
Medium and Large Old and Used Motor Vehicle 18%
Buses which run on Biofuels 18%
White and brown goods like TV, refrigerator, AC, washing machines, microwave ovens; soft drinks and aerated beverages 28%
Cement, wall putty, paint, wallpaper 18%
Perfumes, revolver, pistols 18%
Chocolates, chewing gum, waffles containing chocolate 18%
Luxury and de-merits goods and sin category items e.g. tobacco, pan masala 28% + cess
Small cars – petrol driven 28% + 1% cess
Small cars – diesel driven 28% + 5% cess
Cigarettes 28% + 5% cess
Luxury cars 28% + 15% cess
Heavy bikes, Luxury yachts, private jets 31%
GST rates for Services
Services GST RATE
Sleeper, metro tickets and seasonal passes NIL
Outsourcing (in industries such as gems and jewellery, textiles) 5%
Railways (AC) 5%
Restaurants with annual turnover less than Rs. 50 lakhs 5%
Cab aggregators like Ola, Uber 5%
Airlines (Economy class) 5%
Hotels with tariff Rs. 1,000 - 2,500 12%
Non-AC restaurants without liquor license 5%
Real estate (Work contracts) 12%
State run lotteries 12%
Airlines (Business class) 12%
Telecom, financial service 18%
Hotel room tariff Rs. 2,500 - 7,500 5%
Hotel room tariff above Rs.7,500 18%
AC restaurants with liquor license 5%
Movie tickets below Rs. 100 18%
Movie tickets above Rs. 100 28%
5 star hotels 28%
State authorized lotteries 28%

A four tier GST tax structure as above has been proposed by the GST Council. Keeping zero or very low rates for essential food items which makes up the half of the consumer basket will ensure that there is no widespread inflation due to implementation of revised tax slabs under GST. At the same time, luxury goods and negative items would be taxed at a significantly higher rate so as to ensure revenue neutrality for central and state governments once the new GST tax rates are implemented.
An additional concessional GST tax slab is likely to be implemented for gold and other precious metals that currently attract only 1% VAT.

The proposed GST rates are likely to ease burden on common man as the rates are lower than existing tax on most mass consumption items. Finance Minister Mr. Arun Jaitley has expressed confidence that GST will not be inflationary.

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