The Goods and Services Tax (GST) got launched in India with much fanfare as the Prime Minister Narendra Modi did the honours in the wee hours of Parliament on July 1, 2017. Much was expected out of GST that it would revolutionize the economy by narrowing the gap between the rich and poor.
Since it was a major reform, a lot had to be worked out even after the new indirect tax became legal. Recognizing that, the government kept shuffling the products from one slab to another to make it easy for both public and the businesses. The GST has four slabs of 5%, 12%, 18% and 28%, besides a handful of products out of the purview of the new indirect tax regime. Let’s check out the GST Tax Rate List of Products & Services under different slabs courtesy this article.
List of Those Exempted from the Purview of GST
The government has kept some items out of the purview of GST. The items include the sanitary napkins, deities made of wood, marble or stones, fortified milk, saal leaves, raw materials used in brooms, curd, bindi, salt, bread, vegetables, fruits, raakhis without gold and silver, newspapers, printed books, eggs, flour, judicial papers, stamps, besan, handloom, bangles, among others. There’s no tax even on hotels and lodges having a tariff of ₹1,000.
Which are the Products Covered Under 5% GST Rates Chart?
The 5% GST Rates Chart consists of sugar, ayurvedic medicine, milk food for babies, skimmed milk, sliced mango, roasted coffee beans, edible oil, frozen vegetables, packed paneer, tea, spices, rusk, unbranded namkeen, pizza bread, fish fillet, sabudana, fertilizers, agarbatti, mehndi paste, scientific and technical instruments, real zari, handmade carpets and other handmade textile floor coverings, rubber waste, coir mats, insulin, medicines, stent, braille typewriters, postage stamps, satellite and payloads, etc.
What Products Do You Find in 12% GST Tax Slab?
The products consist of fruit juice, ghee, butter, sugar boiled confectionery, almonds, drip irrigation water, biodiesel and select biopesticides, purses, pouches, mechanical sprayers, wooden frames for printing, jewellery box, mirrors, photographs, brass kerosene pressure stove, packed coconut water, murabba, chutney, namkeen, jam, jelly, pickle, nuts, frozen meat products, animal fat sausage, etc.
List of Products in 18% Slab
The 18% slab includes products such as flavoured refined sugar, vacuum cleaner, washing machine, pastries, cakes, soups, preserved vegetables, briefcase, suitcase, vanity case, ice cream, chocolates, instant food mixes, corn flakes, mixed condiments, mixed seasonings, mayonnaise, salad dressings, curry paste, among others.
What Does the Top 28% GST Slab Consist of?
The slab consists of waffles and wafers coated with chocolate, wallpaper, ceramic tiles, hair clippers, sunscreen, dishwasher, tobacco, pan masala, cigarette, bidi, cement, aerated water, weighing machine ATM, vending machines, yachts, etc.
What’s Hotting Up in the GST Segment?
Speculations of government merging the 12% and 18% slab to create a 15% slab are gaining steam. If the GST Council does come out with such a ruling, it could lead streamline the market further to benefit both consumers and businesses. The debate is also on to bring petrol and diesel under the purview of the GST. Discussions are on between the centre and states for the same. But doing this can have wide ramifications for the economy in general. And so, a decision on it soon may not be a possibility.
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