Since its introduction as indirect tax reform in India, GST (Goods and Services Tax) has taken the center stage in the business tax planning process. Being a comprehensive tax covering several state and central taxes, the GST regime covers different aspects, be it GST registration, verification, GST return filing, or eligibility rules. But if there is something that both businesses and consumers must know, it is about the GST rates in India.
‘How much GST will be charged on which product?’
- A business owner would want to know this before setting the price for the product lineup.
- A consumer would want to know this to pick the right products for regular use and manage his/her personal finance.
In this complete guide, we will take you through the latest GST rate list. Let’s start with the meaning of the GST rate.
What Do GST Rates Mean?
GST tax rates refer to the tax imposed (in percentage) on the sales of different types of products or services under the existing Tax Acts – CGST, IGST, and SGST Acts. Any business registered under the GST tax law is liable to issue invoices that include GST amounts charged on the supply value.
You should also know that:
- The GST rates for intra-state transactions – CGST and SGST, are nearly the same.
- For IGST, the GST tax rate is nearly the total of SGST and CGST tax rates.
Primary GST Slabs and More
- The primary GST tax slabs for regular taxpayers are marked at 0%, 5%, 12%, 18%, and 28%. While there are two other GST rates of 3% and 0.25%, they are less used because of their eligibility criteria.
- Individuals registered under the composition scheme pay GST at nominal or lower rates, like 1.5%, 5%, or 6% concerning their turnover.
- The concept of TDS (2%) and TCS (1%) is also covered under the GST slab rates in India.
- The GST rates need to be multiplied by the assessable supply value to calculate the GST amount in a tax invoice.
- Cess is also levied under the GST law in addition to the GST slab rates mentioned above on the sale of certain items, such as tobacco, cigarettes, petrol, motor vehicles, etc. The cess rate varies from 1% to 204%.
Interesting Read: All About Tax Deducted At Source (TDS)
GST Rates Chart for Commonly-Used Consumable Products
|GST Tax Rate|
|0%||Eggs / Vegetables|
|Unpacked Food Grains/ Atta / Maida / Besan|
|Footwear priced less than Rs. 500|
|Apparel / clothing priced less than Rs. 500|
|12%||Butter / Ghee / Almonds|
|18%||Hair Oil / Soap / Toothpaste|
|AC / Refrigerator|
Interesting Read: All You Need to Know About GST Payment: Modes & Process
What are the GST Rates in India in 2023?
2023 began with some key changes in the GST rates that were passed in Dec 2022. During that phase, the GST council also revised the GST rate list around some specific items in 2022. This includes corrections in the prevailing inverted tax structure and revisions for revenue augmentation.
The following sections include various changes in the list of GST rates in India after different GST council meetings.
Key GST Rates Revisions at 49th GST Council Meeting
The 49th GST Council meeting was held on Feb 18, 2023. to recommend several GST tax rate revisions as given in the GST rates chart below:
|Item||Current GST Rates After the Meeting||GST Rates Before the Meeting|
|Certain tracking devices used on durable containers**||Nil||Applicable rate|
|Coal rejects which are supplied to the washeries||Exempted from cess||Applicable cess|
|Board, authority, or a body set up by the State or Central government including testing agencies to conduct entrance examinations||Exempted||Applicable rate|
* Applicable from Mar 1 2023 as per the CGST notification issued on Feb 28, 2023.
**Applicable from a date that is yet to be notified
Some other GST rate changes are as follows:
- GST on cement did not reach the fitment committee for further examination and may be taken up in the next Council meeting.
- MUV classification to be in line with the SUVs could not be covered due to lack of time.
- No final consensus could be reached for the reduction in GST rates for millet-based health products.
- Renting premises for commercial use (to local bodies, etc.) will attract GST on reverse charge. This will be applicable with effect from Mar 1, 2023.
Key GST Rates Revisions at 48th GST Council Meeting
Given below are the changes recommended by the GST Council at the 48th GST Council meeting that was held on Dec 17, 2022 (notified by CBIC for application from Jan 1, 2023):
|Item||After amendment||Before amendment|
|Pulses husk, including chilka and concentrates, chuni, churi, or khanda used for feeding cattles*||Nil||5%|
|Ethyl alcohol sold for blending with petrol or motor spirit||5%||18%|
|Mentha arvensis sale, as similar to Mentha oil||Under RCM||No RCM|
Other clarifications on the tax rates for supplying different goods and services are:
- Rab or rab-salawat is now classified under HSN code 1702 and falls under the GST rate of 18%.
- Fryums that are made using extrusion come under an 18% GST rate and it is specifically covered under HSN Code 19059030.
- 22% cess on SUVs is applicable on fulfilling the following four criteria:
- It is popularly known as an SUV.
- The engine capacity or cc is higher than 1500cc.
- Length is more than 4000 mm.
- Ground clearance is equal to or higher than 170 mm.
- No GST is applicable if the residential dwelling is rented to an individual registered under GST in his personal capacity for use as a residence, not business.
- Incentives given to banks as a subsidy to promote RuPay Debit cards and low-value BHIM-UPI transactions do not attract any GST.
GST Rate Changes from July 18, 2022
In relation to GST rate revisions, the government issued nine Central tax notifications that were numbered 03/2022 – 11/2022 on July 13, 2022. The related changes in the GST rate list were to be made applicable from July 18, 2022, and include:
|Item||Old GST Rate||Current GST Rate|
|Tar based on coal or coke||5%/18%||18%|
|Cut / polished diamonds||0.25%||1.5%|
|Import of Diethylcarbamazine tablets for the National Filariasis Elimination Programme||5%||Nil|
|Orthopedic appliances for a defect or disability||12%||5%|
|Transport by ropeways*||18%||5%|
|Renting of truck or goods carriage along with fuel cost||18%||12%|
Key GST Rates Revisions at 47th GST Council Meeting
The following decisions were taken during the 47th GST council meeting that was held on June 28 and 29, 2022:
Pruning of GST exemptions
|Services or goods||Old Rate||New Rate|
|Fully exempted earlier, now withdrawn|
|Maps/hydrographics or similar charts, such as wall maps, atlases, etc.||Nil||12%|
|Cheques – in book or loose form||Nil||18%|
|Parts of goods in heading 8801||Nil||18%|
|Transportation of passengers via air route to and from North-eastern states (restricted to economy class)||Nil||Now with condition|
|Transportation by rail or a vessel – railway equipment and other material, storage/warehousing of commodities, etc.||Nil||Applicable rate|
|Room rent exceeding Rs. 5,000 per day for a patient when taxed without ITC (excluding ICU)||Nil||5%|
|Common biomedical waste treatment facilities when taxed with ITC||Nil||12%|
|Accommodation in a hotel priced up to Rs. 1,000 for a day||Nil||12%|
|Recreational coaching or training (arts, sports, or culture) *||Nil||Applicable rate|
|Partially exempted earlier, now withdrawn|
|Coal bed methane or petroleum||5%||12%|
|Scientific instruments given to public-funded research institutions||5%||Applicable rate|
**To come into effect from July 18, 2022, as per CBIC notification
Other than the pruning of GST exemptions, the 47th GST council meeting also covered corrections of the inverted tax structure. The rates on different types of products and/or services increased by 6-7% in every category. Again, the revisions were made to come into effect from July 18, 2022, as per the CBIC notification.
FAQs on GST Rates
What is the gold GST rate?
Under the HSN Chapter 71, the GST rate on gold jewelry, biscuits, or any semi-manufactured product is 3% (IGST or the sum of 1.5% CGST and SGST each).
What is the applicable GST rate on mobile phones?
The new GST rate applicable on mobile phones is 18% as defined under HSN Chapter 3 (HSN Code 85171219).
What are the GST rate categories applicable to different types of goods and services?
The major GST rates that are applicable to different goods and services are 0%, 5%, 12%, 18%, or 28%. Some exceptions attract a lower GST at the rate of 3% and 0.25%.
What are the types of GST?
Currently, there are three types of GST, including Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). Each of these GSTs is applicable to different types of transactions.
Who must pay the tax as per the prevailing GST rates?
The suppliers of taxable goods/services need to collect GST at the specified rates from customers and then deposit the same with the government as per prevailing laws.