GST rates 2017: 4 slabs ranging from 5 to 28 per cent; a guide to GST rate for goods & services

The two day summit to finalize the Goods and Services Tax (GST) concluded on Friday where decisions were taken to finalize the tax slabs for all the articles of consumption. Four slabs ranging from 5 to 28 per cent were decided on services including telecom, insurance, hotels and restaurants under the biggest tax reform since independence. In the piece, here’s a guide to GST rates of goods and services under the four tax slabs-5 per cent, 12 per cent, 18 per cent and 28 per cent. While most of the goods have been covered in the summit, a lot such as healthcare, educational services have been exempted from the GST regime.
“India has finalized four tax rates that will apply to services including telecom, insurance, hotels and restaurants under a new sales tax which should be rolled out on July 1,” Finance Minister Arun Jaitley said.
The council on Thursday approved the tax rates for 1,211 items, of which 7 per cent of the items will be exempted, 14 per cent of them will be in the tax bracket of 5 per cent slab, 17 per cent in the 12 per cent category, 43 per cent in the 18 per cent segment, while 19 per cent of goods will go into the top tax bracket of 28 per cent.


5 per cent GST slab is for those items that are used daily but are not considered basic necessity.


Rail, air, cab aggregators such as Ola and Uber, road transport and small restaurants will also fall in the 5 per cent tax slab. The tax is likely to go up once petrol and diesel are brought under the GST net. Economy class air travel has also been put in the 5 per cent tax slab.

The items inclu
de 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.


The items that are not essential but are then used by a large number of people have been put in the 12 per cent tax slab.


In this, hotels with tariff between Rs 1,000 and Rs 2,500, Non air-conditioned restaurants, business class air ticket, fertilisers will be taxed at 12 per cent.


The items in 12 per tax slab include butter, ghee, mobile phones, cashew, almonds, animal fat, sausages, fruit juices, picture books, umbrella, packed coconut water, agarbatti, frozen meat products, animal fat, mixtures, ayurvedic medicines, tooth powder, namkeen, colour books and sewing machine.


The goods that are considered to be used by the middle class will come under 18 per cent tax slab under the new taxation regime from July 1.


AC hotels that serve liquor, telecom services, telecom services, branded garments and financial services will fall under 18 per cent tax slab.


The goods in this include refined hair-oil, soap, sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, mineral water, camera, speaker, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, toothpaste, tampons, note books, steel products, printed circuits, camera, speakers, note books, steel products, ice-cream, toilet paper, facial tissues and monitors.


28 per cent tax slab-the highest under GST system-is for those luxury goods or health hazards.


Luxury hotels, 5 star hotels, gambling, race club betting and cinema services will attract a tax slab of 28 per cent under the GST tax regime.


The goods in 28 per cent GST tax slab include Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, cars, cement, paint, deodorant, shaving cream, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, and aircraft for personal use that will attract 28 per cent GST tax slab.



The services that have been exempted under the GST include hotels and lodges with tariff below Rs 1,000, and grandfathering service.


Foodgrains, gur, milk, eggs, curd, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits, lassi, unpacked paneer, natural honey, fresh vegetables, fruits, atta, besan, maida, vegetable oil, SindoorPrasad, common salt, contraceptive, bread, bindi, vermillion, stamp, judicial documents, printed books, bangles and handloom products have been exempted from taxation.