The GST Council revises the rates of various commodities with every meeting. Currently, the GST slabs for all items varies between 3%, 5%, 12%, 18% and 28%.
Electronics, groceries, garments, packaged food, and gold GST rate are among the most important rates which individuals keep an eye out on. A higher rate of tax will mean more inconvenience, especially for the middle-income group households.
Here are 10 things that you should know about GST rates:
The current gold GST rate is 3%. Gold attracted around 1% to 2% excise duty along with another 1% VAT (VAT rate varies with state). There are, however, numerous other ways the new gold GST rate affect its price.
Clothing and Apparel
Garments are taxed at 12% in the GST regime. Before GST, ready-made apparel came with a 2% excise duty or 12.5% excise duty along with CENVAT credit.
Footwear up to Rs. 1000 will attract a GST of 5%. Those above Rs. 1000 will attract a tax of 18%.
Packaged Food and Others
Initially, the GST rate on packaged food like biscuits was 18%. The new rate is 5% since February 2019.
Other products that have seen the same cuts include plastic waste, rubber waste, cullet/other glass waste, tailoring services, and biomass briquettes.
Mangoes, Khakra, and Others
GST rates of items like mangoes, khakra, plain chapatti/roti, namkeens, medicines (homoeopathic, Ayurveda, Siddha, and Unani), real zari, paper waste, handloom (priced below Rs. 1000), fly ash bricks, walking stick, and natural cork, have reduced from 12% to 5%.
Similar to the gold GST rate, duties on vegetables remain the same. Vegetables containerised, branded, frozen, cooked (by boiling or steaming), uncooked, and provisionally preserved come with a tax of 5%.
Agglomerated cork, articles of natural cork, and cork roughly squared or debagged will now have attract a GST of 12% instead of the previous 18%.
Carriages for Disabled Persons
Accessories or parts of carriages for specially-abled individuals have seen a drastic decrease in taxes from 28% to 5%. E-waste has also seen a similar reduction in rates.
White and Brown Goods
28% GST will now apply on white and brown goods like washing machines, refrigerators, TVs, microwave ovens, and ACs.
The same rate also comes with cement, aerated beverages, soft drinks, waffles with chocolate, chocolates, chewing gum, perfumes, pistols, and revolvers.
Goods such as deodorants, shaving creams, aftershave, shampoo, dye, toothpaste, and tooth powder will have a GST of 18%.
Insurance Premium and Credit Card Bills
An 18% GST will come with insurance premium and credit cards bills. This is an increase from the previous rate of 15%. Mobile phones and transportation have also seen a similar rise in rates.
Modified GST Slabs and Revisions
Another decision from the 31st GST Council meeting that has changed the GST meaning is the inclusion of goods and services supplies in the composition scheme.
Previously, only goods manufacturers and traders with restaurants that don’t serve alcohol could take benefit of this scheme.
One of the top GST benefits post-revision is the increase of exemption limit from Rs. 20 Lakh to Rs. 40 Lakh. Small businesses are now exempt from taxation, vital to help them create a substantial sum of funds for future expansions.
GST tax rate in India has in fact uplifted the overall positivity of MSMEs throughout the country. Their urge to expand is further reciprocated by lenders who now offer more options in the form financial assistance than before.
The new rates proposed by the government continue to have both positive and negative effects on the mass. However, GST is expected do more good than harm businesses and individuals alike across the country.