Goods and Service Tax is an indirect tax levied in India on the supply of goods and services. This tax came into effect from 1st of July, 2017 through 101st amendment in India. The GST had replaced multiple existing taxes levied by central and state government. There are 4 types of GST in India are Central GST (CGST), State GST (SGST), Union Territory GST (UTGST), Integrated GST (IGST).

Slab rates under GST: 

The GST rates are applicable over 1300 goods and 500 services under five slab rates

Nil rated supplies – 7% of goods and services which consists of goods for regular consumptions includes fresh fruits and vegetables, milk, curd, honey, flour, eggs, fish, chickens etc. along with judicial papers, stamps, handlooms, hotels or lodges with tariffs below Rs. 1,000.

5% rated supplies – 14% goods and services which consists of apparel below Rs. 1,000, foot wares below Rs. 5,000, skimmed milk powder, kerosene, coal, medicine, postage or revenue stamps, rail and economy air class tickets etc. Consists of 2.5% of each CGST and SGST

Business concept about GST Rate with inscription on the sheet

12% rated supplies – Edibles like frozen meat products, butter, cheese, dry fruits, animal fats, apparels above Rs. 1,000, Non – AC restaurants, business air class tickets, state run lotteries etc. Attracts 12 – 17% of GST

18% rated supplies – 43% goods and services consisting of biscuits, cakes, pastries, A.C restaurant that serve liquor, five star restaurants, luxury hotels, IT services, branded garments etc. attracts 18% of GST rates

28% rated supplies – 19% goods and services consisting of chewing gums, pan masala, dishwasher, tobacco, 5 star hotel stays, race club, betting, and lottery and movie tickets above Rs. 100 attracts 28% of GST.

In addition to the above, there are other concessional tax rates which a registered person can chose to opt if he satisfies the conditions for concessional tax rates.

Rates under Composition Scheme – Under provisions of section 10 for supply of goods and notification no. 2/2019, a registered person can pay taxes as follows

Manufacturers and Traders of Good 0.5% 1%
Restaurants (not serving alcohol) 2.5% 5%
Service Providers 3% 6%

Rates for Builder and Developers – Under notification no. 3/2019, CT(Rate) dt. 29-03-2019, the GST council introduced new rates of taxes for persons engaged in real estate constructions.

Projects covered under affordable housing scheme 0.5% 1%
Projects other than those covered under affordable housing scheme 2.5% 5%

Author-CA.Vinit Ugale

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Company: Taxblock india Pvt.Ltd
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Taxblock India Private Limited, founded in 2019, is a fintech startup located in Pune, Maharashtra. We are enrolled as an E-Return Intermediary with Income Tax Department & have established an In-House team of Technology & Tax Experts to build a “Financial Compliance Ecosystem” for Indi View Full Profile

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September 2021