At the stroke of the midnight hour, India launched its ambitious pan-India indirect tax regime, the Goods and Services Tax (GST) to bind the country into a regime of ‘one nation, one tax, one market’. The new tax regime, the GST rates bring massive changes in one of the largest economies of the world. The GST will change the way people conduct businesses in India as the country will become a single market with a single tax rate, irrespective of the state you conduct your business in. Barring a few exemptions, from the smallest entity on the economic food chain to multi-billion conglomerates, no one will stay untouched by the GST. The effect of the new tax regime will be proportional to the size of the entity but ultimately it will be the end-user who will bear the brunt of the higher tax rate or get the benefits of lower taxes.
For example, most of the services, for which we pay 15 percent service tax, will be bracketed into 18 percent tax slab but some will also get cheaper with 5 percent tax slab. Either way, it will take a while to understand how much tax we are paying on a particular product or service. To make your transition easier, we have compiled an item-wise list of a plethora of products and their corresponding tax rates.
Complete list of GST rates for all the items:
No tax (0% GST)
Unpacked foodgrains, fresh vegetables, and fruits, unbranded atta, maida, besan, gur, milk, eggs, curd, lassi, unpacked paneer, unbranded natural honey, palmyra jaggery, salt, fresh meat, fish, chicken, buttermilk, cereal grains hulled
5 percent
Sugar, tea, roasted coffee beans, edible oils, cream, skimmed milk powder, milk food for babies, packed paneer, frozen vegetables, cashew nuts, spices, pizza bread, rusk, sabudana, Raisin, fish fillet, packaged food items.
12 percent
Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, jelly, bhujia, namkeen, fruit juices, frozen meat products, dry fruits in packaged form, animal fat and sausage.
18 percent
Biscuits (all categories), flavored refined sugar, pastries and cakes, preserved vegetables, soups, ice cream, instant food mixes, pasta, corn flakes, curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasonings
28 percent
Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate
Impact of GST rates on Apparels/Footwear
0 percent
Handloom
5 percent
Footwear (up to Rs 500), apparels (up to Rs 1,000)
12 percent
Apparel above Rs 1000
18 percent
Footwear costing more than Rs 500, branded garments, headgear
Impact of GST on most used services
0 percent
Education services, health services, hotels, and lodges with tariff below Rs 1,000, grandfathering service. Rough precious and semi-precious stones (0.25 percent)
5 percent
Transport services (Railways, air transport)
12 percent
State-run lotteries, non-AC restaurants, business class air ticket, fertilizers, work contracts
18 percent
AC hotels that serve liquor, telecom services, IT services, financial services, room tariffs between Rs 2,500 and Rs 7,500, restaurants inside five-star hotels, movie tickets below Rs 100
28 percent
Private-run lotteries authorized by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, movie tickets above Rs 100
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Impact of GST rates on Personal care products
0 percent
Kajal, sindoor, bindi, bangles
12 percent
Toothpowder
18 percent
Toothpaste, soap, toiletries, tampons, kajal pencil sticks, hair oil, tissues
28 percent
Deodorants, shaving creams, aftershave, hair shampoo, dye, sunscreen, shavers, hair clippers
Impact of GST on household items
0 percent
Prasad, Phool bhari jhadoo
5 percent
Agarbatti, domestic LPG, biogas, coir mats, matting and floor covering
12 percent
Umbrella, sewing machine, spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
28 percent
Paint, wallpaper, ceramic tiles, water heater, dishwasher, washing machine, vacuum cleaner
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Impact on Health products
5 percent
Medicines, stent, insulin, Braille paper, Braille typewriters, Braille watches, hearing aids and other appliances to compensate for a defect or disability
12 percent
Ayurvedic medicines, all diagnostic kits, and reagents, glasses for corrective spectacles and flint buttons
How will GST rates affect the prices of electronic devices
12 percent
Mobile
18 percent
Computers, printers, printed circuits, camera, speakers and monitors, Electrical Transformer, CCTV, Optical Fiber
Impact on stationary
0 percent
Children’s drawing and coloring books, printed books, newspapers, stamps, judicial papers
5 percent
Postage or revenue stamps, stamp-post marks, first-day covers
12 percent
Exercise books and notebooks
Impact on Others
0 percent
Jute, bones and horn cores, bone grist, bone meal, hoof meal, horn meal, Human hair
5 percent
PDS Kerosene, coal, lifeboats, ice and snow, kites
12 percent
Playing cards, chess board, carom board, ludo, and other board games
18 percent
Bidi Patta, mineral water, tissues, envelopes, steel products, Aluminium foil, weighing Machinery (non-electrical or electronic), bamboo furniture, swimming pools, and padding pools
28 percent
Automobiles, motorcycles, aircraft for personal use, bidis, pan masala, aerated water, weighing machine, ATM, vending machines
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