Give all your Doubts a miss by Knowing all about GST Rate in India

GST Rate in India is one of the most trending topics of discussion amongst many since the approval of the Goods and Services Tax Bill. GST or the Goods and Services tax is expected to be one of the greatest reforms that would come in practice in the arena of Indirect taxes in India. This tax is predicted to keep many tax problems such as double taxation on commodities and high taxation on necessity commodities in check. Apart from these benefits, GST is also predicted to positively impact the economic growth of the country by giving a much needed boost to the National GDP of the country. Know more about GST Rates in India down below!  

How is GST different?

Goods and Services Tax is very different from the other Indirect Taxes that we have been paying so far.

• The very basic difference is in the principle of implementation of this tax. This tax is levied on the supply of goods and services, in contrast to other indirect taxes that were levied on the manufacture of goods and services.  

• Until now, the consumers paid at the origin of the goods and services. But post GST, taxes will be levied on destination based principal.

• The Centre and the State Governments will impose GST simultaneously on a common base.

• With GST in action, many Indirect Taxes levied by the Central Government and State Government

Benefits of GST

Below are some of the major benefits of GST.

• It will be a major reform movement in the Indirect Tax division of India.

• Many of the existing tax related problems will come to an end. Double taxation and high taxation on necessity commodities are a few of them.

• It will lead to economic growth of the nation.

• It will boost the export and manufacturing activities in the country.

• It will increase the National GDP of India.

• It will help boost the ‘Make in India’ campaign.

• It will a major movement towards solving the problem of poverty and unemployment in the country.

GST rates in india in the year 2017

GST rates in india depends on various factors and varies from product to product. The products are divided into 5 tax slabs, including the 0% GST slab. On the basis of the availability and basic need of the commodities, they are put under 0%, 5%, 12%, 18% and 28% tax slabs.  Difference in GST tax rates on commodities will ensure that basic necessities are under the lowest tax slab whereas luxury commodities and sin commodities are under the highest. This will allow the access of people who are below the poverty line to the basic needs of daily survival. Read on to know the division of commodities under different tax slabs!  

GST rate list

GST rate list is divided into 5 slabs which are 0%, 5%, 12%, 18% and 28%.  As per these slabs the commodities into each slab are:

• 0% Slab: The commodities covered under this slab belong to the basic necessity group. A few of them are- fresh meat, eggs, milk, butter milk, flour, fresh fruits and vegetables, stamps, judicial papers, printed books, newspaper and handloom.

• 5% Slab: The commodities covered under this slab are- fish fillet, cream, spices, tea, coffee, kerosene, coal, medicines, lifeboats and skimmed milk.

• 12% Slab: The commodities covered under this slab are- frozen meat products, butter, cheese, ghee, animal fat, sausages, ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, sewing machines and cell phones.

• 18% Slab: The commodities covered under this slab are-pastas, cornflakes, pastries, cakes, jams, sauces, ice creams, printed circuits, steel products, camera, speakers, monitors, tissue papers and envelopes.

• 28% Slab: The commodities covered under this slab are- chewing gums, molasses, shaving creams, deodorants, hair shampoos, sunscreen, wallpapers, ceramic tiles, paint, water heater, dishwasher, ATMs, vending machines and motorcycles.