What is the GST Rate List for Goods Right Now?

The Goods and Services Tax reform is the latest tax reform that has taken the country by storm. It has replaced all the other indirect taxes that existed in India. One fine day all the taxes such as, Central Excise Duty, VAT, CST, Entertainment Tax and more were subsumed into the GST to give India a unified tax structure. From Jammu and Kashmir to Kanyakumari, one tax system is followed, which is the Goods and Services Tax. This tax reform has helped eliminate the cascading effect of taxes which made the price of final goods really high. Since GST, the prices of some goods have come down, less tax evasions, fast movement of goods from state to state so that it does not affect the cost of goods. GST’s success can’t be measured fully at this point of time because it has just been a year and a half since it has been implemented. The real success can only be measured when it has its full swing.

There are three taxes that compromises the Goods & Services Tax system - CGST, SGST, IGST. The CGST is collected by the central government for sale within the state (intra state). SGST is collected by the state government for sale within the state. Whereas, the IGST is collected by the central government for interstate sale. The GST rates charged differ from goods to goods and services to services. The GST committee keeps revising the rate from time to time according to the changes in the economy. Earlier, the rates for some of the goods were very high. But then, the committee decided that some commodities are not luxury and should be charged a lower rate. Let’s discuss the GST rate list structure of Goods.

GST Rate List on Goods

The Goods and Services Tax reform divides the tax slab according to the nature of goods in four categories - 5%, 12%, 18% and 28%. It is evident that the goods charged under the minimum tax slab is struggling and the government wants to rescue them by low tax rates. And, some basic goods that people use everyday like milk, spices, tea, etc. should also come under the lowest tax slab. While, luxury items should be charged with high GST rates. There are some items that have been added to the “no tax” slab. These are mostly agricultural items, again, an initiative by the government to give impetus to these industries.

No Tax - Cane jaggery (gur), Cereals, Fish (Frozen or not processed), Tender Coconut water, Handloom, Meat, Picture books, colouring books or drawing books for children, Sanitary Napkins, Agricultural implements, Bangles, Postal Items, Firewood or Fuelwood and many more such goods.

5% Tax Slab - Medicines and Drugs, Edible Oil, Tea, Coffee, Milk, coal (for growth of power industries), Sweets, Cashew nuts, Coir mats, matting and floor covering, Pawan Chakki that is Wind-based Atta Chakki, Numismatic coins, Aggarbatti, Natural cork,

Marble rubble, Accessories/parts for carriages designed for differently-abled individuals, Other products for persons with disabilities and many more items.

12% Tax Slab - Medicine,umbrella, Instant food mix, Cell phones,  pickles, Handbags including pouches and purses, ghee, frozen meat products, butter, cell phones, sewing machine, Ornamental framed mirrors, Art ware of iron, etc.

18% Tax Slab - Electrical Transformer, Set top Box for TV, Baby carriages, Used or retreaded pneumatic rubber tires, Power banks powered by Lithium-ion batteries,  mineral water, deodorants, suitcase, briefcase, cookers, stoves, cutlery, telescope, mattress, cartridges, multi-functional printers, door, windows, aluminium frames,  safety glass, mirror, glassware, sheets, pumps, Refrigerators, Water Heaters, Washing Machines, Televisions, etc.

Note that, this GST rate list was precisely for goods. The rate for