Know About All The Gst Slabs In The Biggest Tax Reform of The Country
Goods and Services Tax (GST) was the biggest tax reform that our country has seen over the years. If are unknown about the GST till now, then let me tell you that it is a kind of indirect tax on the supply of goods and services. Since its introduction, it has helped in eliminating various indirect taxes previously used in India such as VAT, Entertainment Tax, Luxury Tax, Excise Duty, Purchase tax, etc. The best thing about this tax is its multistage approach in the supply of goods and services. In and all, GST is a pretty comprehensive tax that our country was in need of so many years.
Under GST, there are mainly three taxes under it known as Central GST, State GST, and Inter-state GST. If the sales of goods and services are happening within the state, then CGST and SGST will be applicable, while if the sales are being taken from one state to another, IGST will be applicable. In this country, we will be telling you about the different GST slabs under which different types of goods and services come. So without any further delay, read on!
What are the different GST Tax Slabs?
Under GST slabs, there are mainly five different tax slabs for over 1300 goods and 500 services. These are 0%, 5%, 12%, 18%, and 28%. But if we want to sum it up, we could say that the GST Council has finalized a four-tier tax structure of all goods and services. The lower rates are fixed for basic goods and services, while the higher taxes will be implemented on the luxury goods and services and also on de-merit goods with an additional cess. You can have a look at the different GST slabs mentioned below.
0% Tax Slab: This is the lowest tax slab of GST slabs under which basic goods and services will come like food items as this is the most basic thing that any human needs. GST Council has also remembered to keep the inflation in control as more than half of the food items come in consumer inflation basket. Goods like flour, besan, Eggs, napkins, marble or wood and services like hotels and lodges below the tariff below 1,000 are exempted from any tax under GST.
5% Tax Slab: Among all the other the GST Slabs, this tax slab of 5% will be reserved for the most common goods like coffee, coal, fertilizers, tea, spices, skimmed milk powder, hand made braids, etc, and services like small restaurants who also provide transportation services, special economy flights for pilgrimages, etc. This slab consists of around 14% of the total goods and services.
12% Tax Slab: This tax slab includes 17% of the total goods and services under GST Slabs. Under this, some of the goods are frozen meat products, butter, cheese, ghee, pickles, sewing machines, cell phones, umbrella, and many more. Some of the main services are movie tickets prices under INR 100, and business class flight tickets, etc.
18% Tax Slab: Under this category of GST Slabs, most of the goods and services come. The list of goods and services include water heaters, washing machines, hairdryers, windows, doors, artificial fruits, artificial flowers, mattress, monitors, printers, pasta, biscuits, etc.
28% Tax Slab: This is the highest tax slab among all the GST Tax slabs. As we mentioned earlier, most of the luxury goods and services come under this tax slab. Some of the goods are Pan Masala, Dishwashers, Paint, Cement, Weighing Machine, Motorcycles, etc, and some of the services are movie tickets, betting on racing and casino, Five-star hotels, etc.
Under GST, there are mainly three taxes under it known as Central GST, State GST, and Inter-state GST. If the sales of goods and services are happening within the state, then CGST and SGST will be applicable, while if the sales are being taken from one state to another, IGST will be applicable. In this country, we will be telling you about the different GST slabs under which different types of goods and services come. So without any further delay, read on!
What are the different GST Tax Slabs?
Under GST slabs, there are mainly five different tax slabs for over 1300 goods and 500 services. These are 0%, 5%, 12%, 18%, and 28%. But if we want to sum it up, we could say that the GST Council has finalized a four-tier tax structure of all goods and services. The lower rates are fixed for basic goods and services, while the higher taxes will be implemented on the luxury goods and services and also on de-merit goods with an additional cess. You can have a look at the different GST slabs mentioned below.
0% Tax Slab: This is the lowest tax slab of GST slabs under which basic goods and services will come like food items as this is the most basic thing that any human needs. GST Council has also remembered to keep the inflation in control as more than half of the food items come in consumer inflation basket. Goods like flour, besan, Eggs, napkins, marble or wood and services like hotels and lodges below the tariff below 1,000 are exempted from any tax under GST.
5% Tax Slab: Among all the other the GST Slabs, this tax slab of 5% will be reserved for the most common goods like coffee, coal, fertilizers, tea, spices, skimmed milk powder, hand made braids, etc, and services like small restaurants who also provide transportation services, special economy flights for pilgrimages, etc. This slab consists of around 14% of the total goods and services.
12% Tax Slab: This tax slab includes 17% of the total goods and services under GST Slabs. Under this, some of the goods are frozen meat products, butter, cheese, ghee, pickles, sewing machines, cell phones, umbrella, and many more. Some of the main services are movie tickets prices under INR 100, and business class flight tickets, etc.
18% Tax Slab: Under this category of GST Slabs, most of the goods and services come. The list of goods and services include water heaters, washing machines, hairdryers, windows, doors, artificial fruits, artificial flowers, mattress, monitors, printers, pasta, biscuits, etc.
28% Tax Slab: This is the highest tax slab among all the GST Tax slabs. As we mentioned earlier, most of the luxury goods and services come under this tax slab. Some of the goods are Pan Masala, Dishwashers, Paint, Cement, Weighing Machine, Motorcycles, etc, and some of the services are movie tickets, betting on racing and casino, Five-star hotels, etc.
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