GST Rates on commonly used items
We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the latest news from the GST council, the tax structure for common-use goods are as under:
GST Rates Structure
Tax Rates
0% GST
Milk
Kajal
Eggs
Educations Services
Curd
Health Services
Lassi
Children’s Drawing & Colouring Books
Unpacked Foodgrains
Unbranded Atta
Unpacked Paneer
Unbranded Maida
Gur Besan
Unbranded Natural Honey
Prasad
Fresh Vegetables
Palmyra Jaggery
Salt
Phool Bhari Jhadoo
5% GST
Sugar
Packed Paneer
Tea
Coal
Edible Oils
Raisin
Domestic LPG
Roasted Coffee Beans
PDS Kerosene
Skimmed Milk Powder
Cashew Nuts Footwear (< Rs.500)
Milk Food for Babies Apparels (< Rs.1000)
Fabric
Coir Mats, Matting & Floor Covering
Spices
Agarbatti
Coal
Mishti/Mithai (Indian Sweets)
Life-saving drugs
Coffee (except instant)
12% GST
Butter
Computers
Ghee
Processed food
Almonds
Mobiles
Fruit Juice
Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly
Packed Coconut Water
Umbrella
18% GST
Hair Oil
Capital goods
Toothpaste
Industrial Intermediaries
Soap
Ice-cream
Pasta
Toiletries
Corn Flakes
Computers
Soups
Printers
28% GST
Small cars (+1% or 3% cess)
high-end motorcycles (+15% cess)
Consumer durables such as AC and fridge
Luxury & sin items like BMWs,
cigarettes and aerated drinks (+15% cess)
Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices.
However, instant food has been kept outside this bracket so, no relief for Maggie lovers!
The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.
Coal to be taxed at 5 percent against current 11.69 per cent. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Expect a good run for Coal India tomorrow.
Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction.
For restaurants serving alcohol, the tax bracket will be 18 per cent
education, healthcare are going to be exempted from GST
services on Non-AC restaurants will be 12 per cent more