Slab rates of GST

GST Rates & HSN Codes

The GST board has made the highly anticipated announcements of tax rates on different categories of goods on day one of a two-day meeting of the said board in Srinagar. There has been a hype around these rates and now these rates are finally in the public domain.

As soon as the GST rates were announced, a huge wave of curiosity came across industry and trade institutions. Everyone evaluates their position as a result of this change. So in this article we will bring you our analysis of these GST rates.

We already know that the GST records are 5%, 12%, 18% a

nd 28%. According to the latest news from the GST council, the tax structure for goods for common use is as follows:

In addition to the above, some other issues were mentioned in the Council's announcement of Council tariffs. These items, and the applicable rates on them are as follows:

• Sugar, Tea, Coffee and Edible Oil fall under the 5 percent plate, while cereals, milk will be part of the exempt list under GST. This ensures that basic products are available at affordable prices. However, direct food is kept out of this bracket, so no surprise for Maggie lovers!
• The Council established the rate for capital goods and industrial intermediates at 18 percent. This will positively affect domestic manufacturers, since seamless import credit is available for all capital goods. Indeed, it's time for 'Make In India'.
• Coal is charged with 5 percent against the current 11.69 percent. This will be beneficial for the energy sector and heavy industries that depend on the coal supply. This will also help to prevent inflation. Expect a good run for Coal India tomorrow.
• Toothpaste, hair oil and soap are all taxed at 18 percent, currently taxed at 28 percent. Most cosmetic and fast moving consumer goods (FMCG) brands should benefit from this tax reduction. After all, Fair and Lovely now seem fairer in his pricing!
• The 'mithai' of the nearby sweet shop can lose some of her taste, as Indian sweets are now taxable at 5 percent. If you have a sweet tooth, this may disturb your bag in the next few days.

In addition, it was announced that:

• For restaurants serving alcohol, the tax rate is 18 percent
• Education, health care is exempt from GST
• The services on non-AC restaurants will be 12 percent