February 26, 2024

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GST Rate Slabs: All You Need To Know

3 min read

The Goods and Service Tax (GST) was introduced in 2017. Since that day, there seem to be a number of modifications and new features to the tax structure of the GST in India. With this current tax system in place, products and services suppliers can collect the tax spontaneously from their clients through the corresponding pricing of their products. This has contributed to a decrease in many of the taxes which are already in place, such as the Central Excise Duty, Entertainment Tax, Luxury Tax, State VAT, Taxes on Advertising, etc.

Who Is Required To Pay GST?

  • If you are a company owner who operates in the production, exchange or supply of goods and has an average value surpassing Rs.40 Lakh annually, you are obligated to pay GST.
  • If you conduct a company dealing primarily with the supply of commodities in special category states (Meghalaya, Himachal Pradesh, Mizoram, Assam, Arunachal Pradesh, Uttarakhand, Sikkim, Nagaland, Tripura, Manipur, and Jammu & Kashmir) and you have an accumulated sales amount of Rs.10 Lakh each year, you will be responsible for the payment of GST.
  • If you are a company owner who operates in the service category and has a consolidated revenue growth limit of Rs.20 Lakh annually, you will be responsible for the payment of GST.

GST Rates In India

The GST rate in India is divided into 4 different categories

5%

Goods subject to GST tax of 5% include products such as peanuts, non-branded namkeen, ayurvedic medications, burning incense, fish filet, frozen vegetables, seasonings, pizza bread, diesel fuel, oil, gas, fertilizers, etc. Ethanol, strong biofuel bottles, woven braids, woven carpets, and other handmade silk floor coverings. The service providers encompass stand-alone AC and non-AC restaurants (including those serving liquor) small eateries in public transport areas like rail and air services, eateries in hotels with a room rate of less than Rs.7500 for every night.

12%

Goods subject to GST tax of 12 percent include items such as fresh fruit drinks, clarified butter, pickles, sausage rolls, canned food blends, mobile phones, sewing machines, wooden frames for works of art, pictures and reflective surfaces, medicines, frozen processed meats, butter, diesel fuel, cheese, pressure cooker, etc.

The services also included cinema tickets priced under Rs. 100 and business class flight tickets also will fall below the 12 percent GST tax slab.

18%

Goods that are subject to GST tax of 18 percent contain products such as breakfast cereal, noodles, cleaning products, glassware, tubes, pumps, edible processed sugar, croissants, chocolate bars, dried fruits, soups, sparkling water, deodorants, torches, lamp fittings, beauty cases, oil powder, bubble gum, hair gel, after-shave products, etc.

Numerous consumer electronics are included in 18 percent GST tax bracket, such as heating systems, washing machines, vacuums, paints, lithium-ion batteries, fridges, television sets, hairdryers, curling irons and dryers, bathroom accessories, digital watches, ovens, stoves, kitchenware, sunglasses, scopes, electronic panels, sheets, tubes, razors, aluminum frames, display displays, multi-functional printing.

Any physical training equipment, musical instruments, and stationery products will also come under the 18 percent GST slab.s The include restaurants situated within hotels with room rates of Rs.7500 and more per night, theater tickets sold at Rs.100, outdoor dining facilities, telecommunications,  and financial services, and designer clothing.

28%

The fourth  GST rate slab includes products that are the most taxed, with more than 200 commodities in this group. Such products are subject to a GST tax of 28 percent and include pan masala, tobacco, distilled liquor, sun protection, carbonated water and drinks, luxury vehicles and bikes, air cleaners, airplanes, and sailboats, washers and dryers, measuring machines, etc.

The services comprise 5-star resorts and lodging where the total stay every night is above Rs. 7500, film tickets above Rs. 200, etc.

0%

Deities made of stone, sanitation facilities, milk products, fruit, vegetables, handicrafts, besan, butter, eggs, news outlets, etc. are non-tax products which are excluded from GST. No tax services shall include all restaurants and lodges with a tariff under Rs.1000. Visit the GST platform online for a more detailed description.

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