GST Rates in 2023 - List of Goods and Service Tax Rates Slabs

GST Rates in 2023 - List of Goods and Service Tax Rates Slabs

Decoding GST Rates in India: A Comprehensive Guide

Understanding the Goods and Services Tax (GST) rates in India is pivotal for businesses and consumers alike. Governed by the GST Council, these rates undergo periodic revisions, impacting a multitude of products and services. In this enlightening guide, we unravel the complexities of GST rates, shedding light on recent changes and the diverse tax slabs.

GST Council Review: Recent Changes

The 41st GST Council Meeting, held on August 27, 2020, witnessed several noteworthy revisions. A snapshot of the changes includes:

  • Railways Goods and Parts (Chapter 86): Old GST Rate - 12%, New GST Rate - 18%

  • Pens: Old GST Rate - 12%, New GST Rate - 18%

  • Metal Concentrates and Ores: Old GST Rate - 5%, New GST Rate - 18%

  • Certain Renewable Energy Devices: Old GST Rate - 5%, New GST Rate - 12%

  • Recorded Media Reproduction and Print: Old GST Rate - 12%, New GST Rate - 18%

  • Broadcasting, Sound Recordings, and Licensing: Old GST Rate - 12%, New GST Rate - 18%

  • Printed Material: Old GST Rate - 12%, New GST Rate - 18%

  • Packing Containers and Boxes: Old GST Rate - 12%, New GST Rate - 18%

  • Scrap and Polyurethanes: Old GST Rate - 5%, New GST Rate - 18%

Additionally, there were reductions in GST rates for specific categories. Notably, vehicles with retrofitting kits for disabled individuals saw a reduction from 12% to 5%. Keytruda, a medication for cancer treatment, also witnessed a decrease from 12% to 5%.

Diverse GST Rates Across Categories

The GST landscape in India encompasses a diverse array of products and services, each assigned a specific tax rate. Here's a glimpse into the varied categories and their respective tax rates:

  • 0% GST: Milk, Eggs, Curd, Lassi, Kajal, Education Services, Health Services, Children's Drawing and coloring Books, Unpacked Foodgrains, Unpacked Paneer, Gur, Unbranded Natural Honey, Fresh Vegetables, Salt, Unbranded Atta, Unbranded Maida, Besan, Prasad, Palmyra Jaggery, and Phool Bhari Jhadoo.

  • 5% GST: Sugar, Tea, Packed Paneer, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (< Rs.500), Milk Food for Babies, and Apparel (< Rs.1000).

  • 12% GST: Butter, Ghee, Computers, Processed Food, Almonds, Mobiles, Fruit Juice, Preparations of Vegetables, Nuts, Fruits, or other parts, and Packed Coconut Water.

  • 18% GST: Hair Oil, Capital Goods, Toothpaste, Industrial Intermediaries, Soap, Ice-cream, Pasta, Toiletries, Corn Flakes, Soups, Computers, and Printers.

  • 28% GST: Small cars (+1% or 3% cess), High-end motorcycles (+15% cess), Consumer durables such as AC and fridge, Luxury & sin items like BMWs, cigarettes, and aerated drinks (+15% cess).

HSN and SAC Codes: The Classification System

The GST rates are intricately linked to the Harmonized System of Nomenclature (HSN) code for goods and the Services Accounting Code (SAC) system for services. HSN codes provide an international standard for classifying goods, while SAC codes categorize services within India. The five GST slabs - NIL, 5%, 12%, 18%, and 28% - are determined based on these codes.

Conclusion:

Navigating the GST Maze

As the GST rates continue to evolve, staying informed is paramount for businesses and consumers alike. Regular updates from official government sources or consultations with tax professionals ensure accurate and up-to-date information. This comprehensive guide serves as a foundational resource, shedding light on the dynamic landscape of GST rates in India.

Decoding GST Rates in India: A Comprehensive Guide

Understanding the Goods and Services Tax (GST) rates in India is pivotal for businesses and consumers alike. Governed by the GST Council, these rates undergo periodic revisions, impacting a multitude of products and services. In this enlightening guide, we unravel the complexities of GST rates, shedding light on recent changes and the diverse tax slabs.

GST Council Review: Recent Changes

The 41st GST Council Meeting, held on August 27, 2020, witnessed several noteworthy revisions. A snapshot of the changes includes:

  • Railways Goods and Parts (Chapter 86): Old GST Rate - 12%, New GST Rate - 18%

  • Pens: Old GST Rate - 12%, New GST Rate - 18%

  • Metal Concentrates and Ores: Old GST Rate - 5%, New GST Rate - 18%

  • Certain Renewable Energy Devices: Old GST Rate - 5%, New GST Rate - 12%

  • Recorded Media Reproduction and Print: Old GST Rate - 12%, New GST Rate - 18%

  • Broadcasting, Sound Recordings, and Licensing: Old GST Rate - 12%, New GST Rate - 18%

  • Printed Material: Old GST Rate - 12%, New GST Rate - 18%

  • Packing Containers and Boxes: Old GST Rate - 12%, New GST Rate - 18%

  • Scrap and Polyurethanes: Old GST Rate - 5%, New GST Rate - 18%

Additionally, there were reductions in GST rates for specific categories. Notably, vehicles with retrofitting kits for disabled individuals saw a reduction from 12% to 5%. Keytruda, a medication for cancer treatment, also witnessed a decrease from 12% to 5%.

Diverse GST Rates Across Categories

The GST landscape in India encompasses a diverse array of products and services, each assigned a specific tax rate. Here's a glimpse into the varied categories and their respective tax rates:

  • 0% GST: Milk, Eggs, Curd, Lassi, Kajal, Education Services, Health Services, Children's Drawing and coloring Books, Unpacked Foodgrains, Unpacked Paneer, Gur, Unbranded Natural Honey, Fresh Vegetables, Salt, Unbranded Atta, Unbranded Maida, Besan, Prasad, Palmyra Jaggery, and Phool Bhari Jhadoo.

  • 5% GST: Sugar, Tea, Packed Paneer, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (< Rs.500), Milk Food for Babies, and Apparel (< Rs.1000).

  • 12% GST: Butter, Ghee, Computers, Processed Food, Almonds, Mobiles, Fruit Juice, Preparations of Vegetables, Nuts, Fruits, or other parts, and Packed Coconut Water.

  • 18% GST: Hair Oil, Capital Goods, Toothpaste, Industrial Intermediaries, Soap, Ice-cream, Pasta, Toiletries, Corn Flakes, Soups, Computers, and Printers.

  • 28% GST: Small cars (+1% or 3% cess), High-end motorcycles (+15% cess), Consumer durables such as AC and fridge, Luxury & sin items like BMWs, cigarettes, and aerated drinks (+15% cess).

HSN and SAC Codes: The Classification System

The GST rates are intricately linked to the Harmonized System of Nomenclature (HSN) code for goods and the Services Accounting Code (SAC) system for services. HSN codes provide an international standard for classifying goods, while SAC codes categorize services within India. The five GST slabs - NIL, 5%, 12%, 18%, and 28% - are determined based on these codes.

Conclusion:

Navigating the GST Maze

As the GST rates continue to evolve, staying informed is paramount for businesses and consumers alike. Regular updates from official government sources or consultations with tax professionals ensure accurate and up-to-date information. This comprehensive guide serves as a foundational resource, shedding light on the dynamic landscape of GST rates in India.

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