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GST Rates finalized

GST Rates finalized

The Union Finance Minister, Mr. Arun Jaitely and state finance ministers concluded a 2 day meeting at Srinagar finzalizing GST rates on 1211 items. The GST rates has been divided into 4 different categories of 5%, 12%, 18% and 28%. Of these 1211 items, a majority of 43% of items has been placed in the tax slab of 18%. A brief of all goods and services in different tax bracket is as follow:

Nil:

Goods: Fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.

Services: Hotels and lodges with tariff below Rs 1,000 & Grandfathering service.

5%:

Goods: Fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent & lifeboats

Services: Transport services (Railways, air transport) & small restraurants.

12%:

Goods: Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine & cellphones.

Services: Non-AC hotels, business class air ticket, fertilisers & Work Contracts.

18%:

Goods: Flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers & monitors.

Services: AC hotels that serve liquor, telecom services, IT services, branded garments  & financial services.

28%:

Goods: Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles & aircrafts for personal use.

Services: 5-star hotels, race club betting & cinema.

Apart from these, compensational cess will be leived on items like aerated drinks containing sugar, tobacco and tobacco products, cigarettes, coal and motor vehicles. The cess on motor vehicles is capped at 15%.

More details are available on the following links:

GST rates detailed PDF

Compensation cess detailed PDF

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