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A brief of tax rates for products under GST

No tax

No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom etc.


Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 %.


Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, and cellphones will be under 12 % tax slab.


Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.


Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, and yachts will attract 28 % tax the

highest under GST system.

A brief of tax rates for services under GST

  • All services have been fitted into four different rates, which are 5%, 12%, the standard 18% and the luxury rate of 28%
  • Transport services (Railways, air transport) will be under the 5% category because their  main input is petroleum, which is outside GST ambit.
  • Service tax on non-AC hotels will 12%, on AC hotels that serve liquor will be 18% Higher tax rate for luxury hotels.
  • Hotels and lodges with tariff below Rs 1,000 will be exempt. Those with Rs 2,5005,000 will be 18%. Luxury hotels will face tax of 28%.
  •  28% tax slab on 5star hotels, race club betting, cinema.
  • 18% tax slab for telecom, financial services
  • Ecommerce players to deduct 1% tax at source before paying suppliers. Eretailers such as Flipkart and Snapdeal to pay GST.
  • 5% tax to be levied on cab aggregators like Ola and Uber
  • Economy class air travel to attract 5% GST, business class 12%

 Healthcare and education have been exempted from the service list


Published by

Varsha singh
(Chartered Accountant)
Category GST   Report

59 Likes   18 Shares   31494 Views


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