GST slab rates in India 2020

GST Rates Chart

The GST council has revised few tax rates under GST as on December 18, 2019. The changes will be effective from January 1 2020.

38th GST Council Meeting Highlights

  • The due dates of GSTR-9 and GSTR-9C have been extended till 31st January 2020 for the FY 2017-18.
  • Input tax credit slashed from 20% to 10% on eligible goods, where invoices and debit notes are not reflected in GSTR-2B.
  • Late fees have been waived for filing GSTR-1 concerning the periods between July 2017 to November 2019.
  • Uniform rate of 28% for the lottery to be effective from 1st March 2020
  • Inverted tax structure rationalised by fixing a single rate of 12% from 18% for woven and non-woven bags, polythene sacks, strips of polypropylene whether laminated or not, but a kind used for packaging goods like FIBC.
  • Long term lease on industrial plots is now exempted from GST to facilitate industrial parks.

GST rates for Goods

Following are the GST rates for goods as per the 38th GST Council Meeting:

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%
Pastries, cakes, pasta, ice creams, soups 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%
Man made fibre and yarn 18%
Medium and Large Old and Used Motor Vehicle 18%
Buses which run on Biofuels 18%
Cement, wall putty, paint, wallpaper 18%
Perfumes, revolver, pistols 18%
Chocolates, chewing gum, waffles containing chocolate 18%
White and brown goods like TV, refrigerator, AC, washing machines, microwave ovens; soft drinks and aerated beverages 28%
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

Following are the GST rates on services as per the 38th GST Council meeting:

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%
AC restaurants with liquor license 5%
Non-AC restaurants without liquor license 5%
Hotel room tariff Rs. 2,500 – 7,500 5%
Hotels with tariff Rs. 1,000 – 2,500 12%
State run lotteries 12%
Real estate (Work contracts) 12%
Airline (Business Class) 18%
Hotel room tariff above Rs.7,500 18%
Telecom, financial service 18%
Movie tickets below Rs. 100 18%
Movie tickets above Rs. 100 28%
5 star hotels 28%
Lotteries 28%

GST council, in its 38th meeting, for the very first time, took a decision through voting, thereby breaking the tradition of making a decision through consensus. The proposal to have a unified GST rate for lotteries was put forward on which voting was conducted. In the voting, 21 states were in favor of the proposal, whereas seven votes were against it.

The focus of the 38th GST council meeting was revenue; that is why to curb tax evasion, the council has slashed the input tax credit from 20% to 10% of eligible credit where the invoices or debit notes are not reflected in filings. Thus, to continue availing 20% credit, invoice matching becomes crucial.

The council also undertook the rationalisation of GST rates to remove inverted tax structure. Thus, it has imposed a uniform rate of 18% woven and non-woven bags plus sacks of polythene or polypropylene strips or the like, irrespective of whether they are laminated or not, but should be of a kind which is used in packaging of goods including FIBC. The new rate will be effective from 1st January 2020.

Other key announcements from the 38th GST Council meeting are:

  • Due date extended for GST return of North Eastern States from November 2019 till 31st December 2019.
  • Industrial land developers who supply long term lease of industrial or financial plots will now have 20% or more share in developer’s capital of central or state government, from an earlier share of at least 50%.
  • Dues dates of GSTR-9 and GSTR-9C have been extended to 31st January 2020 for FY 2017-18.
  • No late fee for GSTR-1 for the periods between July 2017 to November 2019, if filed till 10th January 2020.

GST on Gold

The GST on gold is levied at the rate of 3%. However, in case there is some additional work done on gold then the rate increases to 5%. Apart from gold purchase, GST is levied on jewelry making as well, at the rate of 5% whether you are getting a new jewelry made or making changes in the old one.

GST on Real Estate

After the protest against high GST rates by builders and developers, the government has reduced the GST rates on real estate as per the revised scheme, which will be applicable from April 1, 2019. The effective GST rate for affordable residential apartments is 1%, whereas for other residential apartments, it is 5%. In case of commercial apartments under RREP, the rate is 5%, where as for other commercial apartments, it is 12%. 

GST on Hotels

The GST rate is 12% and 18% for hotel accommodation, where the taxable amount is between Rs. 1001-7500 and above Rs. 7500, respectively. In case the restaurant and catering service is provided and they form part of the specified premise, then the rate applicable is 18%. However, where the restaurant and catering do not form part of specified premise, then the GST rate applicable is 5%.

Revised GST Rates

In the 38th GST Council meeting lottery, GST has been revised to a uniform rate of 28%, which will be effective from March 1, 2020. In addition, the rate of woven and non-woven bags has been changed from 12% to 18%.

FAQs

What is the GST rate in India?

The GST rates in India are applicable under five different tax slabs for different goods and services. There is no general GST rate, but each good and service are separately placed under different tax slabs. 

How many rates are there in GST?

Current GST rates comprises of five GST tax slabs, these are 0%, 5%, 12%, 18%, and 28%.

What are the different GST rates on goods?

The GST rates on goods vary from 5% to 31%. For the detailed rate, click on GST slab on goods.

What are the different GST rates on services?

The GST rates on services vary from 5% to 31%. For the detailed rate table, click on GST slab on services.

What is the GST rate on gold?

The GST rate for gold is 3% and 5%.

What are the revised GST rates?

In its 38th GST Council meeting, the government has announced a uniform rate for lotteries at 28% to be effective from March 1, 2020. Also, it has rationalised GST rate by removing the inverted tax structure. Thus, woven and non woven bags, sacks of polythene, and packaging used for goods, including FIBC.

Our News - Jan 2020
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