GST Slab Rate List In India

What is GST ? Goods and Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the central and state governments. Goods and services tax rates will be as follows as 5%, 12%, 18%, 28%. The Goods and Services Tax or GST is scheduled to be launched on the 1st of July.

Get Details on – Updated GST Slab

Important Note: Previous GST slabs are 5%, 12%, 18% & 28%. Latest tax slab from the GST council, the tax structure for common-use goods are – 0%, 5%, 12%, 18% & 28%.

Why is Goods and Services Tax (GST) is Required ? GST is helpful in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%.

Existing Tax Structure In India : Indian tax structure is divided into 2 categories i.e Direct Taxes and Indirect Taxes.

What is Direct Tax ? Direct taxes the liability cannot be passed on to someone else, for example – if a person earn the income and he/she alone is liable to pay the tax on it.

What is Indirect Tax ? Indirect Taxes the liability of the tax can be passed on to someone else, for example – when the shopkeeper must pay VAT on his sale, he can pass on the liability to the customer. GST will address this issue after implementation.

Impact On Taxes After GST 2019

All the taxes will be bound together by the GST. List of existing taxes in India are as follows.

  • Central Excise Duty
  • Commercial Tax
  • Value Added Tax (VAT)
  • Central Sales Tax (CST)
  • Purchase Tax
  • Food Tax
  • Entertainment Tax
  • Entry Tax
  • Advertisement Tax
  • Luxury Tax
  • Octroi

Previous GST slabs are 5%, 12%, 18% & 28%. Latest slab from the GST council, the tax structure for common-use goods are as below.

0.00% Tax Slab
Eggs Gur Milk Unbranded Atta
Curd Unbranded Natural Honey Educations Services Unbranded Maida
Unpacked Foodgrains Fresh Vegetables Health Services Besan
Unpacked Paneer Salt Children’s Drawing & Colouring Books Prasad
5.00% Tax Slab
Sugar Cashew Nuts Packed Paneer Footwear (< Rs.500)
Tea Milk Food for Babies Coal Apparels (< Rs.1000)
Edible Oils Fabric Raisin Coir Mats, Matting & Floor Covering
Domestic LPG Spices Roasted Coffee Beans Agarbatti
PDS Kerosene Coal Skimmed Milk Powder Mishti/Mithai (Indian Sweets)
12.00% Tax Slab
Butter Almonds Computers Mobiles
Ghee Fruit Juice Processed food Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly
18.00% Tax Slab
Hair Oil Pasta Capital goods Toiletries
Toothpaste Corn Flakes Industrial Intermediaries Computers
Soap Soups Ice-cream Printers
28.00% Tax Slab
Small cars (+1% or 3% cess) Consumer durables such as AC and fridge High-end motorcycles (+15% cess) Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)

Some Important Links Related to GST

List of GST Slab Rates 2019

  • Four tax rates namely 5%, 12%, 18% and 28%
  • Some goods and services would be exempt
  • Separate tax rate for precious metals
  • Cess over the peak rate of 28% on specified luxury and sin goods

GST Slab Rate Benefits To Trade And Consumers

  • Reduction in multiplicity of taxes
  • Mitigation of cascading/ double taxation
  • More efficient neutralization of taxes especially for exports
  • Development of common national market
  • Simpler tax regime
  • Overall reduction in Prices for Consumers
  • Uniform Rate of Tax and Common National Market
  • Free Flow of Goods and Services – No Checkpoints
  • Simpler Tax system
  • Reduction in prices of goods & services due to elimination of cascading
  • Uniform prices throughout the country
  • Transparency in taxation system
  • Increase in employment opportunities
  • Reduction in Multiplicity of Taxes, Cascading and Double Taxation
  • Broader Tax Base and decrease in “Black” transactions
  • Non-Intrusive Electronic Tax Compliance System

Features of GST Law

  • GST to be levied on supply of goods or services
  • All transactions and processes only through electronic mode – Non-intrusive administration
  • PAN Based Registration
  • Registration only if turnover more than Rs. 20 lac
  • Option of Voluntary Registration
  • Deemed Registration in three days
  • Tax can be deposited by internet banking, NEFT / RTGS, Debit/ credit card and over the counter
  • Concept of TDS for Government Departments
  • Concept of TCS for E-Commerce Companies
  • Refund to be granted within 60 days
  • Refund to be directly credited to bank accounts
  • Interest payable if refund not sanctioned in time

GST Registration

  • PAN based Registration: Required to be obtained for each State from where taxable supplies are being made
  • A person having multiple business verticals in a State may obtain separate registration for each business
  • Liability to be registered: (1)Every person who is registered or who holds a license
    under an earlier law. (2)Every person whose turnover in a year exceeds the threshold
  • A person, though not liable to be registered, may take voluntary registration
  • Certain suppliers liable for registration without threshold
  • Registration to be given by both Central and State Tax Authorities on a common e-application
  • Deemed registration after three common working days from date of application unless objected to
  • Self –serviced Amendments except for certain core fields
  • Provision for surrender of registration and also for suomoto cancellation by the tax authorities