The GST rate slabs are set by the head councils of GST. The GST rate slabs are something that is constantly checked and reviewed at regular intervals of time. GST stands for Goods and Service Taxes and is applicable for every good and service according to the GST rate slabs.
GST rate slabs vary from high to low for luxury items and necessities. In India, these slabs categorise goods and services into different tax rates based on their nature.
The GST rate slabs
The GST rate slab categorises goods and services into different tax rates based on their nature. Here are the GST rate slabs, along with the categories they encompass:
- 0%: Certain essential goods and services fall into this category, which includes milk, books, newspapers, healthcare, fruits and vegetables, and education services.
- 5%: This slab includes goods such as packaged food items, footwear below a certain price threshold, clothes below a specified price, transportation services such as railways, and air travel in the economy.
- 12%: items like processed foods, computers, printers, frozen meat products, business class air travel, non-AC hotels, etc, fall under this category.
- 18%: Most of the goods and services come under this slab, including items such as footwear costing above a certain threshold, biscuits, cakes, pastries, mineral water, cameras, air conditioners, restaurants serving alcohol, telecom services, etc
- 28%: Luxury items and services are taxed at this rate. This includes items such as cigars, motorcycles, automobiles, tobacco products, aerated drinks, high-end electronics, 5-star hotels, etc.
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Increase in GST Rates in 2024: Old vs New Rates
In 2024, there are some changes that have been implemented in the GST rates. Some of the basic and major changes are mentioned below in the tabular format with a comparison from the Old GST rates:
| 12 GST Items: Old Vs New GST Rates | ||
| Category | Old GST Rates | New GST Rates |
| Railways Goods and Parts under Chapter 86 | 12% | 18% |
| Pens | 12% | 18% |
| Metal Concentrates and Ores | 5% | 18% |
| Certain Renewable Energy Devices | 5% | 12% |
| Recorded media reproduction and print | 12% | 18% |
| Broadcasting, sound recordings, and licensing | 12% | 18% |
| Printed material | 12% | 18% |
| Packing containers and boxes | 12% | 18% |
| Scrap and polyurethanes | 5% | 18% |
Decrease in GST rates in 2024
In 2024, the changes were not only to increase the GST rates but also to decrease a few of them, which include:
| 12 GST Rates: Decrease in New Rates | ||
| Category | Old GST Rates | New GST Rate |
| Vehicles equipped with retrofitting kits for disabled people | 5% | 5% |
| Keytruda for cancer | 12% | 5% |
| IGST levied on goods sold at the Indo-Bangladesh border | NIL | NIL |
Kinds of GST rates and Structures in India
In India, the Goods and Services Tax (GST) system consists of multiple tax rates and structures. Apart from 0%, 5%, 12%, 18%, and 28%, there are other tax rates and structures in India, which include:
- Multiple Tax Slabs: GST in India operates on a multi-tier tax structure. Goods and services are categorised into different tax slabs ranging from 0 to 28%, along with exempt categories. There are special rates for certain items, like gold and rough precious stones.
- Exempt and Special Rates: Some essential items and services are exempt from GST entirely. Additionally, some items, like gold, rough precious stones, and jewellery, attract a special rate of 3%.
- Integrated Goods and Services Tax (IGST): This tax is levied on inter-state supplies goods and services. The rate of IGST is generally equal to the combined rate of Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) applicable in the destination state.
The taxable composition persons are required to pay General Service Tax at rates such as 1.5%, 5%, or 6% on their overall turnover. The GST law also imposes a cess on the sale of motor vehicles, tobacco, and cigarettes with rates from 1 to 240%.
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List of Goods and Service Tax Rates Slabs
Check the table for latest GST rates on frequently used items.
| Product | Tax Rate |
| Milk | 0% |
| Eggs | 0% |
| Curd | 0% |
| Lassi | 0% |
| Kajal | 0% |
| Education Services | 0% |
| Health Services | 0% |
| Children’s Drawing & Colouring Books | 0% |
| Unpacked Foodgrains | 0% |
| Unpacked Paneer | 0% |
| Gur | 0% |
| Unbranded Natural Honey | 0% |
| Fresh Vegetables | 0% |
| Salt | 0% |
| Unbranded Atta | 0% |
| Unbranded Maida | 0% |
| Besan | 0% |
| Prasad | 0% |
| Palmyra Jaggery | 0% |
| Phool Bhari Jhadoo | 0% |
| Products | Tax Rates |
| Sugar | 5% |
| Tea | 5% |
| Packed Paneer | 5% |
| Coal | 5% |
| Edible Oils | 5% |
| Raisin | 5% |
| Domestic LPG | 5% |
| Roasted Coffee Beans | 5% |
| PDS Kerosene | 5% |
| Skimmed Milk Powder | 5% |
| Cashew Nuts | 5% |
| Footwear (< Rs.500) | 5% |
| Milk Food for Babies | 5% |
| Apparels (< Rs.1000) | 5% |
| Fabric | 5% |
| Coir Mats, Matting & Floor Covering | 5% |
| Spices | 5% |
| Agarbatti | 5% |
| Coal | 5% |
| Mishti/Mithai (Indian Sweets) | 5% |
| Life-saving drugs | 5% |
| Coffee (except instant) | 5% |
| Butter | 12% |
| Ghee | 12% |
| Computers | 12% |
| Processed food | 12% |
| Almonds | 12% |
| Mobiles | 12% |
| Fruit Juice | 12% |
| Preparations of Vegetables, Nuts Fruits, or other parts | 12% |
| Packed Coconut Water | 12% |
| Umbrella | 12% |
| Hair Oil | 18% |
| Capital goods | 18% |
| Toothpaste | 18% |
| Industrial Intermediaries | 18% |
| Soap | 18% |
| Ice-cream | 18% |
| Pasta | 18% |
| Toiletries | 18% |
| Corn Flakes | 18% |
| Soups | 18% |
| Computers | 18% |
| Printers | 18% |
| Small cars (+1% or 3% cess) | 28% |
| High-end motorcycles (+15% cess) | 28% |
| Consumer durables such as AC and fridge | 28% |
| Luxury & sin items like BMWs, cigarettes, and aerated drinks (+15% cess) | 28% |
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HSN and SAC Systems in GST Rates Slabs
HSN stands for Harmonized System of Nomenclature and SAC stands for Services Accounting Code. These are the systems used for the classification and coding of goods and services under the Goods and Services Tax (GST) regime of India.
1. HSN (Harmonized System of Nomenclature)
HSN was developed and maintained by the World Customs Organization (WCO). HSN is an internationally recognized system for classifying goods in a systematic and logical manner. This system assigns a six-digit code to each product, which facilitates uniform classification of goods worldwide.
In India, HSN Codes are used to categorise goods for taxation purposes under GST. The chapter is represented by the first two digits, the heading by the next two, and the subheading by the next two.
2. SAC (Services Accounting Code)
SAC is a similar classification system used for services, unlike HSN, which is used for goods. SAC codes are used to systematically categorise different services provided under GST. These codes help in the identification, grouping, and taxation of various services.
SAC codes also consist of six-digit numerical codes. Each service is assigned a unique SAC code based on its nature and characteristics. SAC codes are used for the invoicing and accounting of services rendered. Like HSN codes for goods, SAC codes for services aid in the efficient administration of taxes and help in maintaining consistency in classification.
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12 GST Items FAQs
What are GST Slabs?
GST slabs refer to the different rates at which goods and services are taxed under the GST system. In India, GST is structured into multiple tax slabs, each with its own applicable rate. The detailed analysis is given in the article above.
How many types of GST are there?
There are CGST and SGST, where CGST stands for Central Goods and Services Tax and SGST stands for State Goods and Services Tax. A detailed analysis of the GST slab rates is given in the article.
What is the GST rate for goods and services?
0%, 5%, 12%, and 28% are the GST rates that are applicable to goods and services. The detailed analysis of the GST rates is mentioned above in the article.
