A Quick Guide to India GST Rates in 2017

Last Updated at: Jan 15, 2021
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On 29th October, 2020, Maruti Suzuki India (MSI) said there is no immediate need for a GST rate cut on passenger vehicles with demand looking good for the next few months. R C Bhargava, the MSI chairman has however said that the government can look at the GST relief if demand gets reduced in future. 

 

The Goods and Services Tax (GST) has been one of the most important thing that has caught the attention of the media and the market because of its implications on the earnings of companies. The large number of items have been kept under 18% GST rates slab by the government. Around 1211 items were categorised under various slabs based on their GST rates. Given below is a low-down on the tax slab that these items would attract, along with their GST rates:

The complete updated list:

Gold and rough diamond will be taxed at 3% and 0.25% respectively. They do not fall under the current rate slab ambit.

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No tax(0%) 
Goods 
No tax will be imposed on items like fresh meat, eggs, fresh meat, fish chicken, milk, curd, butter milk, natural honey, fresh vegetables and fruits, bread, besan, flour, salt ,jute, prasad, bindi, sindoor, judicial papers, stamps, newspaper, printed books,  bangles, handloom, Bones and horn cores, bone meal, grist, bone grist, etc.; horn meal, hoof meal, Cereal grains hulled, Palmyra jaggery, kajal, Salt – all types, human hair, Children’s’ picture, drawing or colouring books.

Services 
Lodges and hotels with tariff below Rs 1,000, grandfathering service has been exempted under GST. Semi-precious and rough precious stones will attract GST rate of 0.25 per cent.
5%
Goods
 
Items like packaged food items, fish fillet, Apparel below Rs 1000, footwear below Rs 500, skimmed milk powder, cream, frozen vegetables, branded paneer, tea, coffee, spices, rusk, pizza bread, sabudana, coal, kerosene, medicines, lifeboats, stent, raisin, Cashew nut, Cashew nut in shell, Ice and snow, insulin, Bio gas, kites, Agarbatti, revenue or postage, stamps, stamp-post marks, first-day covers.

Services

Private-run lotteries which are authorised by the states, hotels with a room tariff above Rs 7,500, race club betting, 5-star hotels, cinema will attract tax 28 per cent tax slab under GST

12%
Goods
Apparel above Rs 1000, butter, ,ghee, cheese, animal fat, frozen meat products, sausage, dry fruits in packaged form, fruit juices, ketchup and sauces, namkeen, Bhujia, Ayurvedic medicines, agarbatti, tooth powder, colouring books, picture books, sewing machine, umbrella, cell phones, All diagnostic kits and reagents, note books, exercise books ,fork, Spoons, ladles, cake servers, skimmers, tongs, fish knives, Spectacles, Playing cards, carom board, chess board  and other board games, like ludo.

Services 
Non-AC hotels, State-run lotteries, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab
18%
Goods
Most  of the items are under this tax slab which include footwear costing more than Rs 500,bindi patta, Trademarks, goodwill, software, Biscuits (All categories), pasta, flavoured refined sugar, cornflakes, cakes and pastries, jams, preserved vegetables, sauces, soups, instant food mixes, ice cream, mineral water, envelops, tissues, tampons, steel products, note books, printed circuits, speakers, camera and monitors, Kajal pencil, aluminium foil, Headgear and parts thereof, Weighing Machinery [other than electric or electronic weighing machinery], Printers [other than multifunction printers],CCTV, Electrical Transformer, Optical Fibre, Bamboo furniture, Swimming and paddling  pools ,Curry paste; salad dressing and mayonnaise ; mixed seasonings and  condiments  .

Goods and Services Tax (GST) is the value-added tax levied on all goods and services that we use within the country. We offer a GST rate finder service that lists out the GST rates of all goods and services that are available in India. This service is also known as the HSN finder.

 

Services
AC hotels which  serve liquor, IT services, telecom services, financial services and branded garments will attract 18 per cent tax under GST, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants inside five-star hotels

28%
Goods
Chewing gums, bidis, molasses, pan masala, chocolate not containing cocoa, aerated water, waffles and wafers coated with chocolate, paint, deodorants, dye, shaving creams, after shave, hair shampoo, sunscreen, ceramic tiles, wallpaper, water heater, washing machines, dishwasher, weighing machine,  ATM vending machines, vacuum cleaner, hair clippers, shavers, motorcycles, automobiles, aircraft for personal use, will attract 28 % tax – the highest under GST system.

Services
Private-run lotteries which are authorised by the states, hotels with a room tariff of above Rs 7,500, 5-star hotels, race club betting and cinema will attract tax 28 per cent tax slab under GST rates.

A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.