The 14th Goods and Services Tax Council meeting has introduced multiple changes in the tax regime of the country. Rates for goods are now at nil, 5%, 8%, 12%, and 28% and the compensation cess to be levied on certain goods and services has also been approved for a number of categories. However, healthcare and educational services have been exempted from the purview of GST.
| Products | GST rate |
| Goods:
Milk, egg, curd, lassi, gur, unbranded atta, unbranded maida, besan, unbranded honey, salt, fresh vegetables, jaggery, unpacked paneer Services: Hotels and logging with tariff below INR 1,000 Grandfathering services, Rough precious and semi precious stones (0.25%) |
0% |
| Goods:
Sugar, packed paneer, tea, edible oils raisin, domestic LPG, roasted coffee beans, kerosene, skimmed milk powder, cashew nuts, footwear (<INR 500), milk food for babies, apparels (less than INR 1,000), fabric coir mats, floor covering, spices, agarbatti, coal, mishti/mithai (indian sweets), life-saving drugs, coffee(except instant), rosaries, hawan samagri, fiber products Services: Transport services, Small restaurant (under 5%), Textile job work |
5% |
| Goods:
Butter, computers, ghee, processed food, almonds, mobiles, fruit juice, preparations of vegetables, fruits, nuts or other parts of plants including pickle murabba, chutney, jam, jelly, gongs, bells, statues, umbrella Services: State-run lottery, Non-AC hotels, Fertilizers, Business class air tickets, Work contracts |
12% |
| Goods:
Hair oil, capital goods, toothpaste, industrial intermediaries, soap, ice-cream, pasta, toiletries, corn flakes, computers, soups, printers, swimming pool equipment, tractor parts, custard powder, rice, computer monitors Services: AC hotels serving liquor, IT services, Financial services, Room tariffs between INR 2500 to INR 7500, Restaurants in 5-star hotels |
18% |
| Goods:
Chewing gums, ATM, washing machines, vacuum cleaner, shavers, dishwasher, water heater, automobiles, shampoo, dyes, sunscreen, chocolate, pan masala, weighing machine, aircraft for personal use, motor cycles, vending machines, ceramic tiles, hair shampoo, after shave Services: Private-run lotteries (State authorized), Hotels with room tariff above INR 7500, 5-Star hotels, Clubbing, Betting, Cinema |
28% |
The above table gives item-wise details of the gst rates which would be levied under the new tax regime.
The current tax regime when compared to the prevalent tax system in India has a number of advantages, these advantages clearly cull out the differences in the two sects of thoughts i.e. GST vs. the old tax system in India.
- GST outcasts the cascading effect, which was formally present
- GST brings e-commerce business under the purview, which was left out in the earlier tax system
- GST provides uniformity in the tax system. There are no multiple layers of taxation. This embarks less complexity in the tax system. GST has made the taxation simple and uniform, the online system provides much convenient landscape for the individuals and the business.
- Logistics business will reap a great advantage from the current rates of gst, primarily because of numerous inter-state and intra-state taxes.
Thus, GST could be considered a stepping stone in the direction of a uniform and simple tax regime for the country.
Sir: What is the GST Rate and SAC No for people practising as Government Registered Valuer for Plant and Machinery? Kindly enlightem me with your prompt reply. Regds and thanks