GST is a unique taxation system introduced by the government, three types: SGST, CGST, IGST, which is applicable throughout the country. Erstwhile, there are many taxation procedures, but now the taxation system is followed under one roof directly. In this article let us know the GST slabs, rates, percentages for the goods and services revised recently in the 41st GST council meeting chaired by the Finance minister of our nation.

New updated tax rates:

Based on the last meeting, here, important amendments are needed to be noted. Out of 227. 177 items have been pulled down to 18% from 28%. This was confirmed by Sushil Kumar Modi, the GST council member. As of now, only 50 items remain on the list of 28% GST tab.

The different GST slabs are:

1. Nil

2. 0.25%

3. 5%

4. 12%

5. 18%

6. 28%

Based on the products and services these percentages vary. There is no huge difference between the last and previous meetings. Only a few amendments are made for certain goods and services.

No tax:

Goods and Services that covered by no tax umbrella are as follows:

Goods– Basic amenities and needs such as vegetables, meat, statues and deities made of stone, marbles, wood, broom, rhakis, natural honey, Saal leaves and milk, flour, eggs, bread, salt, bindi, curd, stamps, newspaper, judicial books, sindoor, fruits, handloom, besan.

Services– The hotels that charge less than Rs. 1000 are exempted from GST. Jan Dhan Yojana, IMM courses and charges on savings account are free from GST.

GST tax of 5%:

Goods– Frozen Vegetables, Coal, Coffee, fish fillet, skimmed milk, ayurvedic medicines,  tea, spices, dry mango, Kerosene, fertilizers, agarbatti, cashew nuts, ornamental trimming in the piece, insulin, textile floor coverings, pizza fall under 5% GST.

Services– Small restaurants hospitality services including train and airport services, small stand-alone A/C and non A/C hotels that serve alcoholic beverages, take away foods, restaurants that charge less than 7500/-  fall under this tariff, Economy class tickets for pilgrims come under 5%.

GST tax of 12%:

Goods– List of goods that come under this category are, ghee, pickles, cheese, tooth powder, namkeen, frozen meats, medicine, cell phones, jewellery box, sewing machine, man-made yarn, instant food mix, umbrella,  Sausage, fruit juices.

Sevices– Business class air tickets charge 12% GST, Movie tickets under 100/- are also added to the list.

GST slab of 18%:

Goods– There are plenty of times fall under this slab, Refined sugar, cornflakes, pasta, pastries, detergents, chocolates, preserved foods, pumps, shampoo, compressor, oil, powder, wristwatches, cooker, light lifting, paints, hair products, chewing gum, ice cream, sanitary ware, deodorants,  goggles, cutlery, butter, fat, artificial fruits and fruits, stationery items, tyres, furniture, cartridges, batteries, power banks, electric boards, wires, video games, suitcase, briefcase, leather products, refrigerators, washing machine, diesel engine parts, aluminum frames, door, windows, television, monitor, speakers, safety glass, mirrors, pasta, cakes.

Services– Restaurants inside the hotels that charge more than 7500/-, outdoor catering, movie tickets over 100/-, telecom and financial services for branded garments will be in this list.

GST tax rate of 28%:

Goods– Items included in this list are as follows: Pan masala, weighing machine, sunscreen, Vaccum cleaner, paint, cement, hair clippers, motorcycles.

Services– Five-star hotels that charge more than 7500/- for a stay, racing, movie tickets- Imax, 3D, betting, racing clubs, gambling, amusement parks, joy ride, theme parks, water rides will be charged as per this tariff.

GST for lotteries at its peak:

This is the very first time in India, the members of the GST council voted for this decision. This percentage of lottery tickets is applicable throughout the country. GST council members put the lottery in the highest number of GST. This vote is based on 21 members of different states favoured and 7 opposed.

GST on Loans and Advances:

The tax percentage of loans increased by 3%, as of now it is 18%, erstwhile it was 15%. There is confusion about this levitation in tax which will impact the interest for sure. However, the government cleared the air that no impact will be caused due to this change.

GST on Gold:

Pieces of jewelry are included in this GST methodology. Gold rate holds 3% and processing, making charges hold 5%. The jeweller can claim the making charges as the input tax credit.

GST on Real Estate:

Real Estate is also included in the GST regime. After adding GST to the list. Under-development property tax has been increased. The tax for both commercial and residential property is 12%. The tax for the non-affordable housing in residential real estate has been declared as 5%, it is 1% for the affordable housing plan. Ready to move in property does not apply to any taxes.

Highlights of GST council meeting:

  1. 29 Goods and 53 services are declined their GST rates.
  2. Nil tax consists of 29 handicraft products as of now.
  3. There is a reduction in agricultural products.
  4. E-way bill was agreed upon by 15 states.
  5. Decisions are awaiting on petroleum and real estate at the next meeting.
  6. Rs. 3,50,000 crore GST collected will be divided between states and central.

All the rates based on the latest GST council meeting has been updated in this article. Phoenix tax consultants in Chennai are tirelessly working to help the people. As the best GST consultant in Chennai, we are pleased to help people who are not aware of the latest updates and revised rates for goods and services.