GST Rates in India
Much-awaited taxation structure reformation means GST rates in India has been announced by GST Council at Srinagar during the two-days days meeting. Finally, tax rates of various categories goods have disclosed and suspense ended regarding Goods and Service Tax(GST) rates. After the announcement, GST rates. Curiosity is on a boom about knowing changes and impact of GST on those changes on the industry. Everyone wants to ensure their position after GST. So, in the below article you will get in-depth analysis of GST rates and its impact on various goods as well as industry.
Impact of GST Rates on Indian of common man.
Food Transportation Entertainment Household Phone-Services
Before 12.5% 15% 30% 28% 15%
After 5% 18% 28% 18% 18%
As we know that GST slabs are respective 5%, 12%, 18% & 28%. As per instruction of GST council, the tax structure for common-use goods are as under:
GST Rates Structure in India
Tax Rates Products
5% - Edible oil, sugar, spices, tea, coffee (except instant)
Agarbatti, Insulin, Cashew Mishti/Mithai (Indian Sweets)
12% - Cutlery, Packaged food, Exercise-book.
18% - Hair oil, toothpaste and soaps, School bags, Tractor
components, Computer Printers.
28% - Luxury & sin items like BMWs, cigarettes
and aerated drinks (+15% cess) Luxury Hotels.
Furthermore, some other items were mentioned in the Council’s announcement of rates. Goods, and its respective tax slab:
- Essential goods like Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, while milk will be part of the exempt list under GST. This is to ensure that necessary goods are available at reasonable prices. However, instant food has been kept outside this bracket so, no relaxation for Noodles ( Maggi ) lovers!!
- Most of the capital goods and industrial intermediate items come under eighteen percent slab. This will be the huge booster for domestic manufacturers and it will also empower the "Make in India" initiative.
- There is a positive sign for power industry of India because coal comes under the 5% slab.
- Good news for daily use product(FMCG), Toothpaste, hair oil, and soaps will all be taxed at 18 percent as GST rates in India. Ultimately Colgate will save your teeth as well as your pocket!
- After knowing GST rates in India sweet may become bitter for because now the delicious “Mithai” comes under the 5% slab
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