GST Rates in 2023: List of Goods and Service Tax Rates Slabs

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With the Goods and Services Tax (GST), the Indian government introduced one of the biggest post-independence taxation reforms. GST is primarily devised to maintain a uniform indirect tax structure across the country. It aims to eliminate the cascading effect of central and state taxes that were levied previously. India’s immigration to this tax regime has helped the concerned officials turn 17 different kinds of indirect taxes into a single form of tax. This uniformity in the taxation scheme across India is undoubtedly a great development.

In India, goods and services are categorised under GST slab rates for taxation. The GST rates are levied for each section depending on whether the good or service is a need or a luxury. Items of need are taxed at a lower rate while items of luxury are taxed in the higher bracket. However, there are some goods that are excluded from GST, with one of the most recent products being sanitary napkins.

Latest News on GST Rates

GST Reductions for Hybrid and Flex Fuel Vehicles are Both Being Considered by the Centre

In order to promote low and/or no-pollution vehicles, the government recently proposed lowering the Goods and Service Tax on flex-fuel vehicles. The proposal is to reduce the current 28% GST to a mere 5%. It is also contemplated that the current 28% GST rates on hybrid vehicles would be slashed down to anything between 12% or 18%. According to sources, there are no plans to bring down the GST on diesel and petrol vehicles.

The environment-friendly initiative is going to be a welcome step for automobile manufacturers who are on the lookout for introducing more flex-fuel vehicles in the Indian market.

- May 25, 2023

What are GST Slab Rates

The GST regime covers about 1,300 types of goods and 500 types of services. It is, thus, classified into mainly four, notable GST slab rates, i.e. 5%, 12%, 18%, and 28%. To ensure the effectiveness of this scheme, a GST Council was set up to revise the rates whenever deemed necessary to keep up with evolving times. Thus, there is a periodic change in the GST rates on various products.

The following table lists down the categories that fall under each GST slab rate.

Levied GST Rate	Type of Product
0.25%	Cut and semi-polished stones
3%	Gold
5%	Household essentials, coal, Indian sweets, life-saving drugs
12%	Processed foods, computers
18%	Capital goods, industrial intermediaries
28%	Luxury items, sin goods

Learn more about the GST rate on labour charges.

List of Items Under 5% GST Slab Rate

Products (Goods)	Services
Agarbatti, Biogas, Insulin	Leasing of aircrafts
Snow and ice, Walking sticks, Natural cork	Renting a motor cab (without fuel)
Indian sweets (mithai)	Tour operator services
Edible oil and spices, Coffee and sugar, Life-saving drugs, Cashew nuts/cashew nuts in shell	Scheduled transport by air or travelling via chartered or non-scheduled flights (used for pilgrimage purposes only)
Stamps/stamp postmarks	Goods transported in a vessel from outside the country
Appliances/equipment that aid the disabled	Print media ad space
Coir mats and floor coverings, Fertilisers, etc.	Transport services in AC vehicles and radio taxis, etc.

List of Items Under 12% GST Slab Rate

Products	Services
Frozen meat	Hotel accommodation (Between ₹1,001 and ₹7,500 per day)
Sauces/Ketchup/Mustard sauce	Real estate construction for the purpose of sale
Dairy items (apart from milk)	Food and beverages (at restaurants without AC and liquor licence)
Fruit juices	Intellectual Property rights on a temporary basis
Sewing machines	Goods transported in a vessel from outside the country
Handmade matches	Rental accommodation (Above ₹1,000 and below ₹2,500 per day)
Jewellery box	Air travel tickets (excluding economy)
Diagnostic kits	Chit fund services by foremen
Notebooks and exercise books, Plastic beads, Corrective glasses, etc.	Railway coaches, wagons, and rolling stock (sans refund of ITC)

List of Items Under 18% GST Slab Rate

Products	Services
Dental wax, Aluminium foil, Toothpaste, Plastic tarpaulin, Baby carriages	Food and drink at restaurants (with AC/heating and liquor licence)
Industrial electronics and transformers	Supply of food and party arrangements
Power banks (Lithium-ion batteries)	Government Job Contracts
Pencil kajal sticks, Headgears, Television set-top boxes, Televisions (up to 32-inch)	Entertainment (circus, folk theatre, cinema, drama)
Furniture (made from bamboo)	Outdoor catering
Stationary (staplers and pencil sharpeners, etc.)	Movie tickets (Above ₹100)
Hair oil, Shampoos, Weight-measuring devices (excluding electronic), Computer monitors (below 17-inch), etc.	Hotel accommodation (over ₹7,501 per day), etc.

List of Items Under 28% GST Slab Rate

Products	Services
Air conditioners	Ballet
Cement	Go-karting
Washing machines	Racecourse
Lotteries (state-owned/authorised)	Gambling
Paint	Casinos
Aerated beverages, Caffeinated beverages	Sports events (IPL, ISL, etc.)
Yachts, Aircrafts, Tobacco products, etc.	Food and drinks (5-star hotels), etc.

List of Goods Exempted Under GST

Milk	Kajal
Natural honey	Sanitary napkins
Hotel accommodation (Below ₹1,000 per day)	Colouring and picture books (for children)
Children’s drawing books	Manuscripts
Music books	Palmyra jaggery
Preserved vegetables	Hulled cereal grains, etc.

The implementation of GST has successfully impacted the Indian economy. Apart from the simplified tax structure, the other positives include increased exports and an increase in pricing competition.

For more information on GST, remember to visit Bajaj Markets.

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GST News

The Finance Ministry Evaluates Various GST Rates for Games of Chance and Skill.

The online gaming industry contributed more than ₹2,200 Crores in GST revenue in the post-COVID era. The GST council has been strategising to bring uniformity among gaming platforms, horse races, and casinos by introducing GST 28% GST in the online gaming sector.

The tax treatment will be different for luck and skill game categories. Online games that require a skill set will be taxed at 18%, while luck-based games will have 28% GST levied on them. The discussion is said to conclude the meeting held in May or June with Finance Minister Nirmala Sitharaman.

- May 11, 2023

Wooden Ice Cream Spoons and Sticks are Subject to a 12% GST Rate: AAR

The Karnataka AAR bench has recently issued their judgement that a 12% GST will be applicable on the wooden ice cream sticks and spoons in an advance ruling. Ragu Packaging Bangalore (applicant) stated that these semi-finished products are imported and are covered under FSC.

The applicant further added that the wood used in sticks and spoons does not involve any chemicals or compression method and, therefore, is classified under HSN code 4421.91.90. However, the AAR bench has classified wooden ice cream sticks and spoons under the HSN code. 4419.90.90 where 12% GST is eligible.

- May 11, 2023

The GST Council is Anticipated to Decide the Online Gaming Tax Rate at its Upcoming Meeting

In the upcoming GST Council Meeting, due to be held in June’23, the GST rates for the online gaming sector would most probably be determined. According to sources from the finance ministry, the upcoming meeting would take up the report of the Group of Ministers on online gaming, casinos and horse racing.

In the previous GST Council meeting that was organised in New Delhi on 18th February, the report, which was submitted by the chair of the Group of Ministers (GoM) and Shri Conrad Sangma, Chief Minister of Meghalaya, could not be conferred.

The current GST rate for gambling and online gaming is 28%. Other games attract 18% of GST on the GGR, gross gaming revenue. The GoM proposed a 28% pf GST on all online games on the entry amount.

- May 08, 2023

Rajasthan AAR Charges 18% GST on the Supply of Precast Manholes Made of Steel and Cement

Natani Precast LLP has sought a judgement from the Rajasthan AAR that GST should be levied on the supply of precast manholes made of steel and cement. A bench of Mahesh Gowla and Umesh Garg has stated that steel and cement precast manholes are tangible and therefore, will be considered as supply of goods and not services.

According to the AAR, the amount that the applicant will charge M/s Larsen & Toubro Ltd., the recipient, for the supply of a precast manhole does not constitute transaction value under Sections 15(1) and 15(2) of the CGST. The recipient will make raw materials freely available and that is outside the applicant's purview for the supply of precast manholes does constitute transaction value for taxation.

- April 25, 2023

The Government Establishes a GST Cess Rate Based on the Retail Sale Price for Pan Masala and Tobacco

GST cess rate will now be imposed on pan masala and tobacco over and above the existing 28%. This has come into effect from 1st of April, 2023, This means the pan masala and tobacco manufacturers would have to bear cess on the final (absolute) retail price when the product leaves the manufacturing unit.

Pan masala which contains tobacco gutkha - 0.61 times the RSP (retail sale price)
Smoking mixtures for cigarettes and pipes - 0.69 times the RSP
Tobacco, jarda scented tobacco and filter khaini - 0.56 times the RSP
Unmanufactured tobacco (branded) and hookah - 0.36 times the RSP

The endeavour is to help in curbing tax evasion as the cess would be levied at the initial point.

- Mar 10, 2023

List of GST Slab Rates in India