GST is the acronym for Goods and Services Tax. It was implemented as a replacement for the former indirect tax system. GST comprises of most of the existing indirect taxes such as VAT, Service Tax, etc. The GST rates have been revised a number of times. Read more interesting facts about the updated GST Rates here.
The GST rates have been revised a number of times since the inception of the Goods and Services Tax (GST). The latest rate revision was brought into effect in the 39th GST Council Meeting which was held on 14 March 2020. Prior to that, there have been a number of GST Council Meetings in which certain rates revisions were introduced. The details in respect to these rate revisions are being discussed below:
The following table reflects the changes in the rates applicable to the goods and services:
| Goods or commodities | New rate | Old rate |
|---|---|---|
| Handmade matches | 12% | 5% |
| Mobile phones | 18% | 12% |
| Other handmade matches | 12% | 18% |
| Aircraft MRO services | 5% along with full ITC | 18% |
Announced on 14 March 2020, the rates mentioned above are applicable w.e.f. 1 April 2020.
Revision of GST Rates announced in the 38th GST Council Meeting
The following table reflects the changes in the rates applicable to the goods and services:
| Goods or commodities | New rate | Old rate |
|---|---|---|
| Sacks of polythene and polypropylene | 18% | 12% |
| State owned lotteries | 28% | 12% |
| State authorised lotteries | 28% | 28% |
| Woven and non-woven fabrics | 18% | 12% |
Announced on 18 December 2019, the rates mentioned above are applicable w.e.f. 1 January 2020. Rates for the lotteries are applicable w.e.f. 1 March 2020.
Revision of GST Rates announced in the 37th GST Council Meeting
Announced on 20 September 2019, the following table reflects the changes introduced in the rates applicable to the goods and services. These changes are applicable w.e.f. from 1 October 2019.
| Goods or commodities | New rate | Old rate |
|---|---|---|
| Plates and cups made of tree products | Nil | 5% |
| Caffeinated Beverages | 28% + 12% cess | 18% |
| Supplies of Railways wagons & coaches (without the refund of accumulated ITC) | 12% | 5% |
| Outdoor Catering (without the ITC) | 5% | 18% |
| Diamond Job work | 1.50% | 5% |
| Other Job work | 12% | 18% |
| Hotels with Room Tariff of Rs.7501 and above | 18% | 28% |
| Hotels with Room Tariff from Rs 1,001 to Rs 7,500 | 12% | 18% |
| Woven or non-woven Polyethylene Packaging bags | 12% | 18% |
| Marine fuel | 5% | 18% |
| Almond Milk | 18% | - |
| Slide fasteners | 12% | 18% |
| Wet grinders (consisting of stone as a grinder) | 5% | 12% |
| Dried Tamarind | Nil | 5% |
| Semi-precious stones- cut & polished | 0.25% | 3% |
| Specified goods for petroleum operation under Hydrocarbon Exploration Licensing Policy | 5% | Applicable rate |
| Cess on Petrol Motor Vehicles (Capacity of 10-13 passengers) | 15% | 1% |
| Cess on Diesel Motor Vehicles (Capacity of 10-13 passengers) | 15% | 3% |
Revision of GST Rates announced in the 36th GST Council Meeting
The following table reflects the changes in the rates applicable to the goods and services:
| Goods or commodities | New rate | Old rate |
|---|---|---|
| Electric chargers | 5% | 18% |
| Electric vehicles | 5% | 12% |
These rates were revised on 27 July 2019 and is applicable w.e.f. 1 August 2019.
Revision of GST Rates announced in the 31st GST Council Meeting
The following table reflects the changes in the rates applicable to the goods and services:
| Goods or commodities | New rate | Old rate |
|---|---|---|
| Vegetables which are preserved provisionally but are not suitable for immediate consumption | 5% | Nil |
| Cooked or uncooked vegetables which are steamed, frozen or boiled (branded) | 5% | Nil |
| Music Books | 12% | Nil |
| Parts for manufacturing renewable energy devices falling under chapter 84, 85 or 94 of Tariff | - | 5% |
| Natural cork | 12% | 5% |
| Fly ash blocks | 12% | 5% |
| Walking sticks | 12% | 5% |
| Marble rubble | 18% | 5% |
| Agglomerated cork | 18% | 12% |
| Cork roughly squared or debugged | 18% | 12% |
| Articles of Natural cork | 18% | 12% |
| Movie Tickets worth Rs.100 or less | 18% | 12% |
| Premium on Third party insurance on Vehicles | 18% | 12% |
| Accessories for Handicapped Mobility Vehicles | 28% | 5% |
| Power banks | 28% | 18% |
| Movie Tickets worth more than Rs.100 | 28% | 18% |
| Video game consoles, equipments used for Billiards and Snooker and other sport related items of HSN code 9504 | 28% | 18% |
| Retreated & used pneumatic Rubber Tyres | 28% | 18% |
| Colour Television Sets & monitors up to “32 Inches” | 28% | 18% |
| Digital & Video Camera recorders | 28% | 18% |
| Pulleys, transmission shafts, cranks and gear boxes under HSN 8483 | 28% | 18% |
| Reduction of tax rates on Air travel of pilgrims | 28% | 18% |
Commodities and Services GST rates
The GST Council has proposed a four-tier tax structure wherein rates are either nil or very low so far as essential food items are concerned. The reason for this is that these food items constitute around 50% of the consumer basket, and contributes significantly towards ensuring that widespread inflation is kept in check even after the revised tax slabs under GST have been implemented. Negative items and luxury goods, however, are expected to be taxed at a considerably higher rate in order to maintain revenue neutrality for state and central governments following the implementation of the new GST rates. Other precious metals are likely to see the implementation of an extra concessional GST tax slab as these metals are currently taxed at just 1% under VAT.
Following is a table of commodities and services and the GST rates applicable to them:
| Commodities / Services | GST Rate |
|---|---|
| Items that are not listed in any other category, such as electrical appliances, oil, soaps, etc. | 18% |
| All services like professional charges, fees, insurance, banking, restaurants, telecom, etc. | 18% |
| Essential farm produced mass consumption items such as wheat, rice, food grains, etc. | NIL |
| Mass consumption and common use food items like mustard oil, tea, spices, etc., but not including processed foods | 5% |
| Processed foods | 12% |
| Cars and white goods | 28% |
| De-merits and luxury goods and items that fall under the sin category, such as aerated drinks, tobacco, luxury cars, pan masala, etc. | 28% + CESS |
GST Council implements rate cuts leaving 35 goods in the highest tax bracket
By July 2018, the GST Council reduced tax rates on 191 goods, leaving only 35 items in the 28% tax category. Some of these include:
- AC
- Dishwashing machines
- Digital cameras
- Cement
- Video recorders
- Parts of automobiles
- Motor vehicles
- Tyres
- Yachts
- Aircrafts
- Aerated drinks
- Sin items such as tobacco, cigarette, and pan masala
At the time of GST rollout, there were 226 goods in the highest tax slab. Over a period of 1 year, the GST Council has slashed the taxation rates for 191 items in total. The highest tax slab may be further rationalised to ensure that only sin goods and super luxury goods are taxed at 28%.
GST rate FAQs
- What is the GST rate for lac?
- Do maize seeds attract any GST?
- What is the GST rate for coffee?
- What are the various types of GST?
- Integrated Good and Service Tax (IGST)
- State Goods and Service Tax (SGST)
- Central Goods and Service Tax (CGST)
- Can GST be paid directly to the government?
The GST rate for lac is 3%.
No, the GST rate for Maize Seeds is nil.
The GST rate for coffee is 28%.
The three types of GST are mentioned below:
Unlike Income Tax, the GST must be paid to the organisation or person who is providing the service. Therefore, the GST amount cannot be paid directly to the government
GST Other Pages
- GST Benefits
- GST Bill
- GST Compensation To States
- History Of GST
- GST Limits
- Accounting Of Interest Tax Under GST
- Composition Scheme Rules Under GST
- Differences Between GST & Previous Tax Structure
- First Post GST Budget 2018
- Impacts On GST
- Imports Under GST
- Refund Process Under GST
- Treatment Of Tds Under GST
- Types Of GST
- Voluntary GST Registration
