Another key issue being debated in great length ‘the rate of GST’ on May 18, 2017, finally approved by the GST Council at its 14th GST Council (theapexdecision makingbodyfor GST) Meeting held at Srinagar, Jammu & Kashmir. The rates of Goods are divided into different Slabs i.e. 0%, 5%, 12%, 18% & 28%, while the GST Compensation Cess Rates for different supplies varies. Though they are approved by the GST Council, but they will be subject to further vetting during which the list may undergo some changes. Tax rates have been finalised for 1,211 items with a majority of items being kept under the 18% slab.
Finance Minister ‘Arun Jaitley’ ensures that its impact will not be inflationary and in some instances prices are even likely to drop and also added “Tax incidence on none of the commodities will go up and in fact there is a reduction in case of many as tax on tax has gone”.
In this article, GST rates on different goods and compensation cess rates for different supplies are being covered.
Slab Rates | ||||
| 0% | 5% | 12% | 18% | 28% |
| Fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, Prasad, salt, bindi, sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom etc. | Fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats | Frozen meat products, butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, ayurvedic medicine, tooth powder, agarbatti, colouring books, picturing books, umbrella, sewing machine and cellphones | Refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors | Chewing gum, molasses, chocolate not containing cocoa, waffles, and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vaccum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use and yatches |
Now, before moving towards the GST Compensation Cess Rates for different supplies, let’s understand what is Compensation cess.
Compensation cess rates means to provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per Section 18 of The Constitution (One Hundred and First Amendment) Act, 2016. Now, let’s have a quick look towards its rates.
GST Compensation Cess Rates for different supplies
| S. No. | Description of Supply | Rate for GST Compensation Cess |
| 1. | Pan Masala | 60% |
| Aerated waters, containing added sugar or other sweetening matter or flavoured | ||
| 2. | Aerated waters | 12% |
| 3. | Lemonade | 12% |
| 4. | Others | 12% |
| Tobacco and Tobacco Products | ||
| 5. | Unmanufactured tobacco (without lime tube) – bearing a brand name | 71% |
| 6. | Unmanufactured tobacco (with lime tube) – bearing a brand name | 65% |
| 7. | Tobacco refuse, bearing a brand name | 61% |
| 8. | Chewing tobacco (without lime tube) | 160% |
| 9. | Chewing tobacco (with lime tube) | 142% |
| 10. | Filter khaini | 160% |
| 11. | Jarda scented tobacco | 160% |
| 12. | Pan masala containing tobacco ‘Gutkha’ | 204% |
| Cigarettes | ||
| Non- filter | ||
| 13. | Not exceeding 65 mm | 5% + Rs.1591 per thousand |
| 14. | Exceeding 65 mm but not 70 mm | 5% + Rs.2876 per thousand |
| Filter | ||
| 15. | Not exceeding 65 mm | 5% + Rs.1591 per thousand |
| 16. | Exceeding 65 mm but not 70 mm | 5% + Rs.2126 per thousand |
| 17. | Exceeding 70 mm but not 75 mm | 5% + Rs.2876 per thousand |
| 18. | Others | 5% + Rs.4170 per thousand |
| Other tobacco products | ||
| 19. | Cigar and cheroots | 21% or Rs. 4170 per thousand, whichever is higher |
| 20. | Cigarillos | 21% or Rs. 4170 per thousand, whichever is higher |
| 21. | Cigarettes of tobacco substitutes | Rs.4006 per thousand |
| 22. | Cigarillos of tobacco substitutes | 12.5% or Rs. 4,006 per thousand whichever is higher |
| 23. | Other | 12.5% or Rs. 4,006 per thousand whichever is higher |
| 24. | ‘Hookah’ or ‘gudaku’ tobacco tobacco bearing a brand name | 72% |
| 25. | Tobacco used for smoking ‘hookah’or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku | 17% |
| 26. | Other smoking tobacco not bearing a brand name | 11% |
| 27. | Smoking mixtures for pipes and cigarettes | 290% |
| 28. | Other smoking tobacco bearing a brand name | 49% |
| 29. | Other smoking tobacco not bearing a brand name | 57% |
| 30. | “Homogenised” or “reconstituted” tobacco, bearing a brand name | 72% |
| 31. | Preparations containing chewing tobacco | 72% |
| 32. | Snuff | 72% |
| 33. | Preparations containing snuff | 72% |
| 34. | Tobacco extracts and essence bearing a brand name | 72% |
| 35. | Tobacco extracts and essence not bearing a brand name | 65% |
| 36. | Cut tobacco | 20% |
| 37. | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 96% |
| 38. | All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name | 89% |
| Others | ||
| 39. | Coal; briquettes, ovoids and similar solid fuels manufactured from coal. | Rs.400 per tonne |
| 40. | Lignite, whether or not agglomerated, excluding jet | Rs.400 per tonne |
| 41. | Peat (including peat litter), whether or not agglomerated | Rs.400 per tonne |
| Motor Vehicles | ||
| 42. | Motor vehicles (10 | 15% |
| 43. | Motor vehicles (10 | 1% |
| 44. | Small Cars (length < 4 m ; Diesel < 1500 cc) | 3% |
| 45. | Mid Segment Cars (engine < 1500 cc) | 15% |
| 46. | Large Cars (engine > 1500 cc) | 15% |
| 47. | Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) | 15% |
| 48. | Mid Segment Hybrid Cars (engine < 1500 cc) | 15% |
| 49. | Hybrid motor vehicles > 1500 cc | 15% |
| 50. | Hydrogen vehicles based on fuel cell tech > 4m | 15% |
| 51. | Motorcycles (engine > 350 cc) | 3% |
| 52. | Aircrafts for personal use. | 3% |
| 53. | Yacht and other vessels for pleasure or sports | 3% |
Author: C S Ekta Maheshwariis the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com
Disclaimer:
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.
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please let me have a list showing all items coming under the purview of GST along with GST rates. I could not get answer to my above question from any where and hence this request. Please help me
Kamath