As a consumer in India, staying up-to-date with the latest GST rates is of utmost importance. Time and again, the GST council makes essential modifications by exempting certain goods and services and revising others with the new GST rates.
These changes can have a profound impact on consumers like us, as well as on the industries that serve the economy at large. Therefore, it is crucial to comprehend and analyse the latest GST slab rates that apply to our daily use products and services, and to determine the current rates for popular items.
GST slabs refer to the tax rates applicable to various goods and services, as fixed and periodically revised by the GST council. In India, these rates typically fall into 5 categories - 0%, 5%, 12%, 18%, and 28%.
The items falling under this slab are classified as nil-rated. The list comprises essential goods and services that are frequently consumed by individuals and includes items such as milk, fresh fruits and vegetables, eggs, bread, bangles, sanitary napkins, and more.
This is one of the lowest rates of indirect tax under the GST regime. This slab includes basic household essential items like tea, sugar, spices, and other life-saving drugs, as well as clothing priced below ₹1,000 and domestic LPG.
Some of the notable goods and services falling under this category are ghee, butter, cheese, frozen meat products, fruit juices, agarbatti, colouring books, and umbrellas. It also includes hotel accommodations with a per-day tariff of ₹7,500 or less.
This is the most commonly applied GST rate covering biscuits, pasta, cornflakes, instant food mixes, ice creams, mineral water, and notebooks. This rate also applies to luxury hotel stays with a per-day tariff exceeding ₹7,500.
This is the highest rate of GST and applies to luxury goods like cars, AC, and refrigerators, as well as ‘sin’ items such as cigarettes and gambling and casino services. Some items in this category are also subject to additional cess.
Note: There are less popular GST rates of 0.25% and 3%, which are applied to certain items such as gold, diamonds, and other precious stones.
The applicable rate of GST is determined by the type of transaction. For interstate supply of goods and services, the single rate (IGST) is applied, while for intrastate supply, the rate is split equally between CGST and SGST.
For instance, if a smartphone is sold by a seller in Maharashtra to a buyer in Gujarat, a 12% IGST rate would apply. However, if the same transaction occurred between the buyer and seller, both located within Maharashtra, the rate would be divided into 6% CGST and 6% SGST. Irrespective of the type of transaction, the total GST applicable to mobile remains fixed at 12%, with only the distribution of taxes varying.
Is your item missing out? You can check all the new GST rates applicable on any goods or services by visiting the official website of the Central Board of Indirect Taxes and Customs (GST).
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The GST rates for coffee vary depending on its form. Unroasted coffee beans are exempt from GST, while roasted coffee is taxed at a rate of 5%. However, roasted chicory attracts a 12% GST rate, and coffee extracts, essences, and concentrates are subject to a higher rate of 28% GST.
Fresh or pasteurised milk which is not concentrated or sweetened falls under the category of nil-rated goods and, thus, is not subject to GST. However, if the milk is concentrated or sweetened, a 5% GST applies. Additionally, condensed milk attracts a GST rate of 12%.