GST Council had recommended a number of changes in the Goods and Services Tax. The government has categorized every item into 5 major GST rate slabs -
-0%, 5%, 12%, 18% and 28%. Here we will know your gst rate and item or services that are exempted from tax. Below are more details of the items in the GST rates slabs.
-0% or No Tax
Items Exempted from Tax are - fresh meat, fish, chicken, jute, butter, eggs, milk, curd, butter milk, fresh vegetables and fruits, printed books, Cereal grains, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, Guar meal, hoof meal, horn meal,hulled, Palmyra jaggery, Khadi purchased from Khadi and Village Industries stores, all types of salt, Kajal, Children's' picture, drawing or colouring books, human hair, Clay idols, brooms, Cotton seed oil cake, Charkha, hop cone, certain dried vegetables, unworked coconut shell and fish, and bangles of lac/shellac.
Services Exempted from Tax are - Hotels or lodging which have tariff below Rs 1,000, and Grandfathering service. Rough precious and semi-precious stones will attract GST rate of 0.25 per cent, admission to ‘protected monuments’, rough industrial diamonds including unsorted rough diamonds to face 0.25% and not 3% GST.
Goods in this Category are - LPG supply to household domestic consumers by private LPG distributors, Tailoring service, Basketware and wickerwork,Tamarind Kernel Powder, Mehendi paste in cones, Scientific and technical instruments, Velvet fabric,
Cigarette filter rods,
Services in this Category are - All of the restaurants, restaurants of hotels which have room tariff of less than Rs 7,500, Textile job work, Transport services (Railways and air transport) Supply of e-waste, Food parcels.
Goods in this Category are - Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, cellphones, Ketchup and Sauces, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, All diagnostic kits and reagents, umbrella, sewing machine, Exercise books and notebooks, spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games etc.
Services in this Category are - Non-AC hotels, State-run lotteries, fertilisers, business class air ticket, and Work contracts.
Goods in this Category are - footwear costing more than Rs 500, jams, sauces, soups, ice cream, instant food mixes, Trademarks, goodwill, software, Biscuits (All categories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, tissues, envelopes, tampons, notebooks, steel products, printed circuits, camera, speakers, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machinery], Printers etc.
Services in this Category are - Restaurants in hotel premises having room tariff of Rs 7,500 and above, branded garments, telecom services, IT services, outdoor catering,
and financial services,
Goods in this category are - In total 50 luxury and sin products are taxed which include Bidis, molasses, pan masala, washing machine, ATM, aerated water, water heater, dishwasher, weighing machine, paint, sunscreen, wallpaper, ceramic tiles, vending machines, vacuum cleaner, automobiles, motorcycles, aircraft for personal use
Services in this category are - Private-run lotteries authorised by the states, cinema will attract tax 28% slab under GST and race club betting.
To safeguard the interest of common man items which have become costlier after the application of GST can be financed at no cost EMI. Thus, making the items affordable and markets competitive, in the long run.
Additional read: All you need to know about GST
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.