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GST is one hot topic currently in India which is gaining more and more popularity. The new taxation regime has changed everything from taxation procedure to taxation rules and provisions. However, the basic question is how the GST rate will affect the common population of India. Will the monthly budget shoot up or it will go down? GST in India is still a matter of confusion and people are still struggling with the new GST rates on products and services that they are availing. To resolve all the queries of the common population regarding GST, the Government of India has simplified the taxation slab and introduced a GST calculator that will help you in finding the HSN and GST rates of particular products. If you too own a business, you simply need to get a GST software that can help you resolve your HSN code finder queries.

In this post we list the GST tax rates defined as per the GST Council. Take a look.

Zero Tax Rate

As per the details given by the GST Council so far, nearly fifty percent of the items are included as daily needs products which will attract zero percent tax. Items like wheat, rice, grains, pulses, salt, and turmeric are exempted from VAT. Therefore, it will be counted as a benefit for the end consumer who belong to any class of family.

Five Percent GST Tax Rate

Five percent is almost considered as negligible and it will attract the packaged items such as toothpaste, biscuits, and breads and so on. However, this was a surprise for everybody out there as the government of India was generating a good amount of revenue. People are still confused of the fact that which items are kept into this category.

Twelve percent GST Tax Rate

Twelve percent GST tax slab will attract majority of goods and services that previously included VAT and excise duty. This slab will help Government to generate revenues in larger chunks. Therefore, services like restaurants and work on contract services will attract the twelve percent GST tax rate, however, it depends on what kind of services you’re availing. Again if you want to know the accurate rates one of the best way is to download a HSN code finder that will sort all your queries.

Eighteen Percent GST Tax Rate

Eighteen percent tax will be collected from the end consumers for the luxury services or products they avail for example the cosmetics, branded clothes, cellphones, dry cleaning, tailoring, restaurant bills and so on. However, the tax slab is still confusing for the common population of India. To resolve such queries, Government has appointed certain ASPs to introduce a simplified version of GST software or a calculator that will help people find the accurate GST rates.

Twenty Eight Percent GST Tax Rate with Cess

The highest slab rate is of the twenty eight percent GST tax rate which will include products like sin goods and luxury cars, aerated drinks and so on. The cess has also been added to this which may bring the tax rate up to 30-31%. The easiest way for the Government to collect tax is to levy tax on luxury items where the ultra-rich category will continue to buy such items. It also makes sense to keep the aerated drinks in this category to restrict people from such sin goods.

Wrapping Up

After the implementation of GST, things have been sorted out and are expected to reduce the corruption and bring the black money back into rotation. Initially there will be a lot of problems that businesses and common population might have to face, but, in the long run, GST will prove to be beneficial and will help people in one way or the other. It’s advisable to co-operate with the Government and eliminate your confusion by getting a reliable GST software that can help you know the accurate HSN codes for products and services.


Published by

(Financial Advisor)
Category GST   Report

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