What is GST (Goods and Services Tax) | GST Rates on Different Goods and Services in India | Benefits/Impact of GST | Full Information on GST

What is GST (Goods and Services Tax) | GST Rates on Different Goods and Services in India | Benefits/Impact of GST | Full Information on GST: GST (Goods and Services Tax) in India is the biggest reform of the indirect tax structure. The actual purpose of GST bill is to introduce one single tax on supply of goods and services, from the manufacturing stage until the final product reaches in the hand of consumer. In short, now all the indirect tax like excise duty, service tax and state tax called VAT will be absorbed under GST.

The Prime Minister of India, Narendra Modi Launches GST on the midnight of 30th June 2017. And this historic event takes place at the Central Hall of the Parliament. During this event the Prime Minister said that now in India One Nation, One Tax.

What is GST (Goods and Services Tax) | GST Rates on Different Goods and Services in India | Benefits/Impact of GST | Full Information on GST

What is GST (Goods and Services Tax) | GST Rates on Different Goods and Services in India | Benefits/Impact of GST | Full Information on GST

 

GST Rates on Different Goods and Services in India

GST (0%)

Goods

According to reports, there will be no tax 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, judicial papers, printed books, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery, Salt – all types, Kajal, Children’s’ picture, drawing or coloring books etc.

Services

Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST. While rough precious and semi-precious stones will attract GST rate of 0.25 per cent.

GST (5%)

Goods

The items on which GST will be 5% are fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice and snow, Bio gas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-post marks, etc.

Services

The Transport services (Railways, air transport) and small restaurants will be categorized under the 5% GST.

GST (12%)

Goods

The items on which the GST will be 12% are Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, namkeen, Ayurvedic medicines, tooth powder, picture books, umbrella, sewing machine, cell phones, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and note books, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board etc.

Services

State-run lotteries, Non-AC hotels, business class air ticket, fertilizers, Work Contracts will be categorized under 12% GST.

GST (18%)

Goods

The items on which the GST will be 18% are footwear costing more than Rs 500, Trademarks, goodwill, software, Biscuits (All categories), flavored 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 and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil etc.

Services

AC hotels that serve liquor, telecom services, IT services, branded garments and financial services are categorized under 18% GST.

GST (28%)

Goods

The highest GST i.e. 28% is imposed on the items like chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, 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, aircraft etc.

Services

Private-run lotteries authorized by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, cinema etc are categorized under 28% GST.

Benefits/Impact of GST

  • Due to GST in India the cost of some consumer goods and services is increased. On the other hand the cost of some goods and services is decreased also.
  • Check posts across the country are abolishing that ensures free and fast movement of goods.
  • Seamless flow of tax credit from manufacturer/supplier to user/retailer to eliminate cascading of taxes.
  • To create a unified common National market.
  • Simpler tax regime with fewer exemptions.
  • Other benefits as well as impact will be seen in couple of days or months.

I hope you got meaningful information. If you like this post then shares it with your friends at social sites and also shares your feedback to us by writing a comment below in the box. In the next post I will explain how to enroll & register for GST.

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