The Goods and Services Tax (GST) is now more than a year old phenomenon. It was July 1, 2017, when the Prime Minister Narendra Modi launched the same in Parliament. The new indirect tax reform was launched with four slabs of 5%, 12%, 18% and 28%.
There are many items being kept out of the purview of the GST as well to comfort the common man. Plus, the government has been constantly looking to rationalize the rate structure by shifting the products with the different slabs. Let’s take a close look at how GST Slab in India pans out at the moment.
What Happened in the Recent GST Council Meeting?
The 28th GST Council in its meeting last month decided to shift as many as 90 items earlier placed in the top tax slab of 28% to lower ones. With that only 35 items are now placed in the 28% GST slab. Apart from that, the council made further changes. Take a look at those changes.
List of Items Exempted from GST Levy
The list consists of the following
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Deities made of marble, stone or wood
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Raakhis
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Sanitary Pads
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Fortified Milk
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Saal Leaves
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And Much More
What Are the Items Pushed Down to 18% from 28%?
The following items are now pushed down to 18% rate from 28% earlier.
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Refrigerators
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Washing Machines
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Televisions
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Vacuum Cleaners
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Hair Shavers & Curlers
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Scent Sprays
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Lithium-ion Batteries
Which Have Now Come Down to 12% from 18%?
The below list shows the items having fallen to 12% from 18% earlier.
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Jewellery Box
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Pouches
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Purses
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Mirrors
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Wooden frames for printing
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Ornamental framed mirrors
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Brass kerosene pressure stove
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Art ware of iron
List of Items to be Taxed at 5% GST
The council has decided to keep the following items under the 5% GST slab.
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Handmade Carpets
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Other Handmade Textile Floor Coverings
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Ornamental Trimming in the Piece
Where are Most Food Items Lying?
Amidst all the shuffles and changes, the focus remains very much on the food items as to whether they are affordable or not. Prices when low make it highly affordable for the masses and not so the other way round.
Food Items Sitting in 5% GST Slab
Following are the food items that are taxed at 5% GST Tax Rate Slab in India.
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Tea
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Sugar
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Sliced Mango
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Packed Paneer
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Skimmed Milk
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Frozen Vegetables
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Unbranded Namkeen
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ICDS Food Packages
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Pizza Bread
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Cashew Nuts
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Sabudana
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Packaged Food Items
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Rusk
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Fish Fillet
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Edible Oils
Which Food Items Can You See in 12% Slab?
These include
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Fruit Juice
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Butter
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Ghee
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Sugar Boiled Confectionery
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Fruits
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Pickle
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Nut
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Chutney
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Murabba
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Jam
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Bhujia
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Namkeen
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Jelly
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Packaged Dry Fruits
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Frozen Meat Products
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Animal Fat Sausage
Which Food Items are Placed in 18% GST Tax Rate?
You can see the following items in the 18% GST tax rate.
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Flavoured Refined Sugar
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Biscuits
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Pastries
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Cakes
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Soups
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Preserved Vegetables
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Ice Cream
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Chocolates
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Curry Paste
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Instant Food Mixes
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Corn Flakes
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Salad Dressings
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Pasta
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Chewing Gum or Bubble Gum
So, you saw different GST tax rates on products being sold in India. The rates have been constantly easing with each council meeting. It’s widely anticipated that the council may merge the 12% and 18% to form 15%, converting the 4-tier into a 3-tier tax rate structure.