All about GST Slabs & Rates
Various GST slab rates have been defined to enhance transparency between the customers and sellers in this taxation process. Each of these slabs includes different categories of items depending on certain parameters.
Want to check out the tax rate applicable on your favourite products and services?
Refer to our compilation for a clear idea.
What are GST slab rates?
In India, almost 500+ services and over 1300 products fall under the 4 major GST slabs. These comprise rates of 5%, 12%, 18%, and 28%. The GST Council periodically revises the items under each slab rate to adjust them according to industry demands and market trends. The updated structure ensures that the essential items fall under lower tax brackets, while luxury products and services entail higher GST rates.
Here is a detailed discourse on the classification of items under the several rate slabs.
List of items under the 5% GST slab rate
The lowest standard rate applies mostly to household necessities and daily essentials. Refer to the following table to find the products and services with a 5% tax rate under GST. Refer to the table to understand what GST percentage applies to particular goods.
Goods
1) Edibles like:
- Spices
- Plain chapati
- Oil
- Pizza bread
- Fish fillets
- Khakhra
- Tea
- Coffee (excluding instant coffee)
- Baby food
- Sugar
- Cashew nuts
- Indian sweets (Mithai or Mishti)
- Frozen vegetables
- Unbranded namkeen
- Pawan Chakki or wind-based Atta Chakki
2) Fuel like:
- Coal
- Biogas
3) Fertilisers
4) Life-saving medicines and drugs
5) Accessories for specially-abled individuals like:
- Walking sticks
- Braille paper
- Hearing aids
- Braille watches
6) Incense sticks or Agarbatti
7) Footwear and apparels under Rs.1000
8) Handmade items like:
- Carpets
- Gabba/Namda
- Braids
- Ornaments
9) Natural cork
10) Fly-ash
11) Numismatic coins
12) Ice and snow
13) Kites
14) Marble rubble
Services
1) Aircraft leasing
2) Crude and petroleum products transport
3) Takeaway food
4) Economy class flight tickets
5) Newspaper printing
6) Tailoring
7) Transport services via AC cabs andradio taxi
8) Restaurants:
- Both AC and Non-AC standalone ones
- Those with a turnover of Rs.50 lakhs
- Those in hotels with a sub-Rs.7500 room tariff
9) Print media advertisement space
10) Tour operator services
List of items under the 12% GST slab rate
The GST rate list for secondary necessities, mostly comprising processed food, cooking utensils, and other such items has been summarised below.
Goods
1) Processed food:
- Frozen meat
- Sausage
- Fruit juices
- Sauces (except salad dressing items)
- Ketchup
- Pickles
- Boiled sugar confectionery
2) Dairy products:
- Butter
- Cheese
- Ghee
3) Dry fruits and nuts like almonds
4) Packaged products:
- Drinking water
- Coconut water
5) Cooking utensils:
- Forks
- Spoons
- Fish knives
- Tongs
- Ladles
- Cake servers
6) Sewing machines
7) Flint buttons
8) Corrective spectacles and glasses
9) Exercise books and notebooks
10) Walkie-talkies or two-way radios
11) Handmade matches
12) Fixed speed diesel engines
13) Ornamental framed mirrors
14) Containers:
- Purses
- Pouches
- Handbags
- Jewellery box
15) Photographs
16) Diagnostic kits
17) Plastic beads
18) Man-made yarn
Services
1) Business class flight tickets
2) Movie tickets worth less than Rs.100
3) Hotel stay with daily cost less than Rs.7500
4) Room tariff above Rs.1000 and below Rs.2500 per day
5) Mining and drilling of natural gas
6) Real estate construction for sale IP rights on a temporary basis
7) Foremen-led chit fund services
8) Railway coaches, wagons, or rolling stock sans refund of ITC
9) Eating and drinking at outlets without a liquor license or AC
10) Goods Transportation in containers via rail not under the Indian Railways
Now, there might be a lot of products or services you might be opting for quite frequently, which have not been covered under any of the already-mentioned GST slab rates. Well, we hope that you will find these items under the next tax category.
List of items under the 18% GST slab rate
The 18% GST rate covers quite a number of relatively essential items. If you have been wondering what percent of GST is applicable against some of your most sought-after products/services, here might be your answer since this section includes a majority of items compared to the other slabs.
Goods
- Mineral water
- Pasta
- Biscuits
- Pastries
- Cornflakes
- Soups
- Curry paste
- Preserved vegetables
- Instant food mixes
- Food supplements
- Mixed condiments
- Flavoured refined sugar
- Cocoa butter
- Ice cream
- Chocolate
- Chewing gum
2) Capital goods:
- Plastic tarpaulin
- Salt-glazed stoneware pipes
- Jute, artificial plastic
- Aluminium foil
- Optical fibre
- Winding wires
- Coaxial cables
- Ball bearing
- Roller bearing
- Helmets and helmet parts
- Electrical boards
- Diesel engine parts
- Parts of pumps
- Precast concrete pipes
- Tyres and tyre tubes
- Retreaded second-hand rubber tyres
- Wheel rims and axles
- Paints
3) Household products:
- Hair oil
- Shampoo
- Toothpaste
- Detergent
- Room deodorisers
- Shaving and after-shave products
- Mattress
- Furniture (other than furniture wholly made of bamboo)
4) Perfume
5) Cosmetic preparations
6) Make-up and beauty products
7) Weight-measuring devices
8) Installations:
- Doors and windows
- Sanitaryware
- Aluminium frames
9) Electrical and electronic appliances
- Refrigerators
- Water heaters
- Washing machines
- Televisions (up to 32 inches)
- Computer monitors (below 17 inches)
- Camera
- Vacuum cleaners
- Hair shavers
- Hair curlers
- Hair dryers
- Fans
- Lights
- Pumps
- Compressors
- Set-top box for TVs
- Discharge lamps
- Power banks with Lithium-ion batteries
- Printers and cartridges
10) Containers
- Suitcase
- Vanity case
- Briefcase
- Cotton handbags
- Shopping bags
- Polythene and Polypropylene packets and bags
- Non-leather school bags
11) Dental wax
12) Kajal pencils
13) Electrical transformer
14) Measuring devices like callipers, tapes, etc.
15) Leather clothing
16) Wrist watches
17) Cooking items:
- Stoves
- Cutlery
- Cookers
18) Telescope
19) Razor and razor blades
20) Goggles
21) Binoculars
22) Stationary:
- Pencil-sharpeners
- Clips
- Staplers
23) Carriages for babies
24) Sports goods
25) Video game consoles
26) Other products with HSN code 9504
Services
1) Movie tickets worth more than Rs.100
2) Hotel accommodation bill equal to or above Rs.7500
3) Daily room tariff ranging between Rs.2500 and Rs.5000
4) Eating at restaurants located in hotels with above Rs.7500 daily tariff
5) Telecom and IT services
6) Outdoor catering
7) Performance arts:
- Theatre
- Indian classical and folk arts
- Circus
8) Party arrangement
9) Eating and drinking at outlets with a liquor license, AC and heating arrangement.
List of items under the 28% GST slab rate
The GST percentage for most luxury items is set at 28%, which is the highest standard rate. However, some of these items again come with an additional charge on top of the GST slab rates. This is called Cess, and it is a compensation charge to make up for the lack of revenue due to GST implementation. Have a look at the following table to understand which services and products belong to each of these categories.
Goods
Without Cess
1) Eatables
- Aerated water (with or without sugar)
- Instant coffee
- Chocolates (without cocoa)
- Coffee concentrates
- Custard powder
- Protein concentrates
- Molasses
2) ATM vending machine
3) Air conditioners
4) Dishwashers
5) Yachts
6) Aircrafts
7) State-owned and state-authorised lotteries
8) Accessories
- Eyelashes
- Wigs
- Felt hats
- False beards
9) Fax machines
10) TV monitors over 32 inches
11) Stoves (excluding LPG and kerosene ones)
12) Powder
With Cess
1) Caffeinated beverages
2) Tobacco and tobacco products
3) Pan masala and Gutkha
4) Fuel:
- Petrol
- LPG
- CNG
5) Motorised vehicles (except motorcycles)
Services
1) Hotel stay with over Rs.7500 bill
2) 5-star hotel services
3) Gambling
4) Go-karting
5) Ballet
6) Racing club services
7) Casinos
8) Entertainment services
9) Sports events
GST-exempted goods and services
The items that do not fall under any of the GST slab rates have been listed in the following table.
Goods
1) Eatables
- Raw fruits and vegetables
- Milk
- Buttermilk
- Curd
- Flour
- Bread except when serve for consumption
- Salt
- Natural honey
- Jaggery
- Fresh meat
- Hulled cereal grains
- Eggs
- Besan
2) Sanitary napkins
3) Bindi
4) Sindoor
5) Bangles
6) Handloom
7) Jute
8) Saal leaves
9) Items of paper
- Printed books
- Newspapers
- Judicial papers
10) Stamp
11) Rakhis not studded with precious metals and stones
12) Idols made of clay
Services
1) Hotel stay with room tariff less than Rs.1000
2) Bank charges on savings account
Frequently Asked Questions
What is the GST rate on loans in India?
GST is applicable only on the additional fees, including processing charges, paid to the loan provider, and not on the principal repayment and interest amount. This rate is kept at 18% for most sought-after financial products like home loans, business loans, and personal loans.
Is there a special GST rate slab for cut and semi-polished stones?
Yes, according to the 37th GST Council Meeting, a 0.25% GST is applicable on cut and semi-polished stones.
Do I need to pay any GST Compensation for Cess on coal?
Yes, the Taxation Laws Amendment Act of 2017 replaced the Clean Energy Cess tax on coal with the GST Compensation Cess, which charges a similar rate of Rs.400 per tonne.