19 May 2017

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In Depth GST Tax Rate Fixed what will become cheaper or costly

In Depth GST Tax Rate Fixed what will become cheaper or costly

Congress party started the process of GST Tax reform and finally under the BJP government it is getting completed.

Law making is continuous process so no need to give credit to any political leader or party.
It is the duty of the politicians to make the laws for nation, we elect them for this not to travel all over world with the tax payer’s money and enjoy life.

From July 1, 2017 prices of items will change as the Goods and Services Tax is slated to be implemented from that day.

The GST Council finalized tax rates for services under the Goods and Service Tax (GST) regime, scheduled to apply from July 1 at the end of day 2 of the meeting held in Srinagar.

GST Council has broadly approved the GST rates for goods at nil that is zero rate, 5%, 12%, 18% and 28% to be levied on certain goods.

GST rates for certain goods like textile, footwear, biris, precious metals, etc. are yet to be decided by the GST Council.

In short there are 5 tax slabs
1- zero tax
2- tax 5%
3- tax 12%
4-tax slab 18%
5- tax slab 28%

According to GST slabs, seven per cent of the items fall under the exempt list while 14 per cent have been put in the lowest tax bracket of 5 per cent.

Another 17 per cent items are in 12 per cent tax bracket, 43 per cent in 18 per cent tax slab and only 19 per cent of goods fall in the top tax bracket of 28 per cent. This means that as many as 81 per cent of the items will attract 18 per cent or less GST.

Healthcare and education would be exempt from GST.

Coal will attract GST of 5 per cent as against the current tax incidence of 11.69 per cent. But, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.

ACs and refrigerators will fall in the 28 per cent tax slab. But, they are likely to be cheaper as they currently attract 31-32 per cent tax.

Foodgrains, milk and other articles of daily use have been exempted from taxation under the GST regime.

These items are: foodgrains, gur, milk, eggs, curd, lassi, unpacked paneer, natural honey, fresh vegetables, fruits, atta, besan, maida, vegetable oil, Prasad, common salt, contraceptive, bread, bindi, vermillion, stamp, judicial documents, printed books, bangles and handloom products.

Travelling on metro, local train, religious travel, Haj yatra will all be exempt from GST

The items that are used daily but are not considered articles of basic necessity are taxed at 5 per cent under the GST regime.

These items are: sugar, tea, coffee, edible oil, coal, skimmed milk powder, milk food for babies, condensed milk, packed paneer, newsprint, umbrella, PDS kerosene, LPG, broom, fish fillet, cream, frozen vegetables, spices, pizza bread, juice, sabudana, coal, medicines, stent and lifeboat.

GST rates on six categories of products—bio-diesel, beedi and cigarettes, footwear, textiles, agricultural implements and gold—will be finalized in the council’s next meeting on June 3 in Delhi.

Transport services including air services and goods transport will be taxed at 5 percent from the existing 15 percent.

Restaurants with an annual turnover of less than Rs 50 lakh will fall under the 5 percent tax slab.

non-ACs food joints will be taxed at 12 percent.

Air-conditioned restaurants with liquor licenses will be taxed at 18 percent.

Hotels and lodges will a tariff below Rs 1000 a day will be exempted from GST.

Hotel and Lodges with a room rate of between Rs 1000-Rs 2,500 will be taxed at 12 percent.

Five star and luxury hotels will be taxed at 28 percent.

Services related to gambling, race club betting and cinema halls will also be taxed at 28 percent.
Cinema halls were currently paying a service tax of 15 percent plus a state entertainment tax that ranged from 28 percent to about 100 percent. All these will be subsumed under the 28 percent GST rate

Casinos will also come under the 28 percent tax bracket.

Work contract services = 12%

5% tax to be levied on cab aggregators like Ola and Uber

Telecom, financial services to attract GST of 18%

Transport services will attract 5% GST.

Live animals, fruit juices and meat will call for a 12% tax along with butter and cheese. Condensed milk under 18%.

Coffee (not instant), tea and groundnut and fish will attract 5%

jaggery is exempt under GST,

cane sugar and beet sugar are in the 5% tax slab.

Bio gas plant, wind mills and kerosene lantern and coal will also be under the 5% tax rate.

Mobile phones, fountain pen ink, tooth powder, incense sticks, feeding bottles, Braille paper, children’s coloring books, umbrellas, pencil sharpeners, tractors, bicycles, contact lenses, spectacle lenses, utensils, sports goods, fishing rods, combs, pencils and hand paintings have been placed under the 12% tax rate under GST.

18% tax rate = helmets, LPG stoves, nuclear reactors, clocks, military weapons, electronic toys and plastic buttons.

The articles are considered to be used by middle class people will attract 18%. These items are: hair oil, soap, toothpaste, capital goods, industrial intermediaries, pasta, corn flakes, jams, soups, ice-cream, toilet paper, facial tissues, iron and steel, fountain pen, mineral water, camera, speaker, icecream, envelops and instant food items.

highest tax slab of 28% = aerated drinks, perfumes, after-shave lotions, deodarants, clothing of furskin, razor blades, cars, revolvers, pistols

The items that are not essential but used by large number of households and people will attract 12 per cent GST. These items are: butter, ghee, mobile phones, cashew, almonds, sausages, fruit juices, packed coconut water, agarbatti, frozen meat products, animal fat, mixtures, ayurvedic medicines, tooth powder, colour books and sewing machine.

Such items, which are considered as luxury goods or health hazards will attract 28%. These articles are: consumer durables, cars, cement, chewing gum, custard powder, pan masala, perfume, shampoo, make-up items, fireworks, motorcycles, paint, deodorant, shaving cream, hair dye, washing machine, vending machines, vacuum cleaner, hair clippers and dish washer.

Aerated drinks and cars will be in 28 per cent bracket. On top of the peak rate, small cars will attract a 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.

Pan masala gutka is in 28 per cent GST bracket. It will further attract a 204 per cent cess. With regard to other pan masalas the cess will be 60 per cent.

In case of tobacco, the levy will vary from 71-204 per cent. Scented zarda and filter Khaini will attract 160 per cent cess over and above 28 per cent

Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 per cent plus Rs 1,591 per 1000 sticks.

Non-filter cigarettes exceeding 65 mm but not exceeding 70 mm will attract cess of 5 per cent plus Rs 2,876, that for filter cigarettes the levy is 5 per cent plus Rs 2,126 per thousand sticks.

For cigars, a hefty levy of 21 per cent or Rs 4,170 per 1000 sticks, whichever is higher, would be levied.

Branded gutkha will be slapped with a cess of 72 per cent, while smoking mixtures for pipes and cigarettes will attract a levy 290 per cent.

The consumers of aerated water will pay 12 per cent cess over and above GST while people buying large cars will to cough up 15 per cent cess from July 1.

While small petrol cars with engine less than 1200 cc will attract 1 per cent cess, that with a diesel engine of less than 1500 cc will attract 3 per cent cess.

Large cars with engine greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15 per cent.

Motorcycles with engine of more than 350 cc will attract 3 per cent cess and an equal amount of levy will be applying to aircrafts for personal use and yachts.

As per discussions in the GST Council Meeting held on 18th May, 2017

Reality views by sm –

Friday, May 19, 2017

Tags – In Depth GST Rate May 2017 Facts


Jamshed Azmi May 21, 2017  

GST achchha hea. Ise jaldi hi lagu kr diya jayega. Lekin jahan tak mujhe jaankari hea ki kuchh stats ne ise abhi tak manjuri nhi di hea. aese me desh ko kitna fayda milega. Theek Theek nhi kaha ja sakta.