The GST Council determines the rate slabs of the GST rate slabs. The GST Council reviews the tax slabs for goods and services on a regular basis. Rates are typically high for luxury items and low for necessities. In India, the GST tax rates for numerous commodities and services are split into four slabs: 5%, 12%, 18%, and 28%.
Different states and sectors support lowering the GST tax rate for numerous things, which are discussed in council meetings. The GST is divided into three tax categories:
- CGST: Central GST
- SGST: State GST
- IGST: Integrated GST
GST Rate revision in 43rd GST Council Meeting
The 43rd GST council meeting was held on 28 May, 2021, where the below decisions were taken:
- GST on emergency supplies and relief materials will be excluded and will remain in force until August 31, 2021.
- The import of Amphotericin B, a drug used to treat black fungus, is also exempt from taxes.
- Any Covid-related aid item sourced with the specific intent of making a donation to the government or any relief organisation is exempt from IGST until August 31, 2021.
- The finance minister declared an amnesty scheme to minimise late fee returns. This scheme allows small taxpayers to file returns.
- A team of ministers will be established, and they will file a report by June 8, 2021, determining whether the rates should be raised or decreased.
Latest GST Tax Slab Rates for Goods
The authorised GST interface publicises information on the most recent GST tax slab rates. The list is extensive, and vendors must discover the rates that apply to their commerce. For instance, if a vendor of household appliances wants to understand the most recent relevant GST rates, the rate must be sought under a particular category. The data below is predicated on the most recently published GST rates for general categories of commodities.
1. Goods and services tax (GST) on foods and drinks
Numerous items in this bracket have lower GST rates. Those who had 12 per cent GST have 5 per cent GST, those who had 18 per cent GST previously have 12 per cent GST, and those who had 28 per cent have 18 per cent GST.
2. GST on routine household items
The new GST rates are lower for a number of products in the category of household items. Those who previously paid 18 per cent GST now pay 12 per cent or 5 per cent GST. Those that had a GST rate of 28% have GST rates of 5%, 18%, and even 0%.
3. GST on educational products
GST rates for several items in this category have been lowered from 28 per cent to 12 per cent.
4. Medical and health-related items are subject to GST
GST is whittled down from 12% to 5% for goods in the health and medical bracket, and to 0% for individual components.
5. GST on agricultural products
Agrarian items with a previous GST of 12% now have a GST of 5%. Items in the classification with a previous GST rate of 18% now have a diminished GST rate of 12 per cent.
6. Goods and services tax (GST) on infrastructure, fuel, and environmental items
Objects in this classification that previously had a GST of 28% now have a GST of 18%. Items that earlier had an 18% GST rate now have a 12% GST rate.
7. Goods and services tax (GST) on safety and security items
There have been no significant changes declared from the previously applicable rate of 18%.
8. GST on a variety of items
Numerous items with 28 per cent GST now have 18 per cent GST, 18 per cent GST now has 12 per cent, and 5 per cent GST now has 0 per cent GST.
Latest GST tax slab rates for services category
Unlike products, services are classified according to the relevant tax slab rates. There have been no significant changes to GST service rates for service category products announced. To determine the relevant GST rate, the service provider can begin with nil GST rates, which have the most mentioned services under them. Numerous services may be qualified for a 0% GST rate after submitting the appropriate paperwork or completing the required procedures.
Services with 0% GST rates
Comprise of a long list of service items that include:
- Independent bodies, government organisations, academic facilities, faith communities, and healthcare institutions.
- Services rendered for humanitarian causes, arts or heritage, and charitable athletics donations are defined in section 12 AA of the IT Act.
- Folk culture showings, theatrical performances, circus, dance, and drama shows with a ticket price of no more than Rs. 250 per person.
- Services of a socially beneficial nature, provided to a foreign official, UN organisations, and the Indian consulate.
Services with 5% GST rates
Include the following services:
- Scheduled airline aircraft subletting for routine procedures.
- Selling advertising space in print advertising.
- Services provided by tour companies.
- Printing of books and newspapers.
- Organic textile yarn production, natural fibre production, and animal skin preparation.
- Polishing of precious metals and stones.
Services with 12% GST rates
Include the following services:
- Food and beverages are available in restaurants with air conditioning and central heating but no alcohol license.
- Lodging services trying to charge more than Rs. 1000 per day but less than Rs. 2500 per day.
Services with 18% GST rates
- Foreman assistance for chit fund.
- Air transport of passengers in non-economy class.
- Intellectual property rights of services except for IT software.
- Buildings built for the purpose of resale.
- Food and beverages are available at diners with an alcohol license, as well as air conditioning, central heating, and outdoor catering.
- Charges for lodgings that are more than Rs 2500 per day and less than Rs 7500 per day.
- Food and beverage supply and lodging services are packaged services.
- Services identified in article 2, clause 119 of the GST Act include circuses, Indian classical dance, folk dance, theatrical performances, and cinemas with tickets costing less than Rs. 100.
Services with 28% GST rates
Lodging services that charge Rs. 7500 per day or more, amusement services, sports, racetrack, casino, ballet, and films are all included.
How Deskera Can Guide You?
Discover how you can combine accounting, finances, inventory, and much more, under one roof with Deskera Books. It's now easier than ever to manage your Journal entries and billings with Deskera. The remarkable features, such as adding products, services, and inventory, will all be available to you from one place.
Experience the ease of implementation of the tool and try it out to get a new perspective on your accounting system.
With the guiding and informative videos on how to manage and set up India GST, you can learn about and familiarize yourself with the process in just a few minutes.
Deskera Books can handle every aspect of the organization, including inviting colleagues and accountants.
The introduction of GST has had a positive effect on the nation's economy. Aside from the streamlined taxation system, other advantages include improved exports and valuation competing. The homogeneous taxation system also makes it simpler for taxpayers to understand where their money is going.