Good and Service Tax - GST Tax rates and Slabs in India 2017 - Product or Service wise GST in India 2017

The Indian government is moving closer to July 1 for the squash of GST (Goods and Services Tax) across the country. The bill has already been passed in Lok Sabha. The initiative behind GST is to make taxation simple for everyone. Besides that to have a centralized tax policy to replace a number of indirect taxes, with GST, the government of India making the process of taxation so easy.

However, there are still few questions, on how it will impact on the prices of electronics products, Automobiles, Daily Necessities, Banking and many more. Most importantly, will it benefit consumers? 

According to experts analysis it is rotating around “Digital India” and “Make in India” initiatives. The government of India promoting the use digital currency in the form of mobile wallets, Unified Payments Interface (UPI) based apps, Bharat QR and USSD based mobile banking in the part of Digital India. Here Smartphone will play the crucial role in Digital India concept so there will be much impact on smart phones.

There are 5 different tax slabs in GST they are 0%, 5%, 12%, 18% and 28%. The government of India kept maximum number of products under 18% tax slabs. The government of India categorized 1211 items under the above mentioned tax slabs. Gold and Diamonds do not fall under these slabs. Gold and Diamonds be taxed 3% and 0.25% respectively. Here is the complete updated list of items by slab wise.

No Tax (0% Tax):

GOODS:

          No tax will be imposed on items like Jute, Fresh Meat, Fish, Chicken, Eggs, milk, butter milk, curd, natural honey, Fresh fruits, vegetables, bread, Prasad, salt, stamps, judicial papers, printed books, news papers, bangles, handlooms, Kajal, children’s picture, coloring books, human hair and more.

SERVICES:

          Hotels and lodges with tariff below Rs. 1,000. Grandfathering services are exempted from GST. Precious, Semi Precious stones will attract the GST of 0.25%.

5% Tax :

GOODS:

            Items such as fish fillet, Apparel below Rs 1000, packaged items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, kerosene, coal, medicines, stent, lifeboats, Cashew nut in shell, Raisin, Ice and snow, Bio gas, Insulin, Postage or revenue stamps, stamp-post marks and more.

SERVICES:

            Transport services (Railways, air transport), small restaurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

12% Tax :

GOODS:

          Apparel above Rs. 1000, frozen meat products, butter, ghee, cheese, animal fat, dry fruits, fruit juices, nankeen, ayurvedic medicines, tooth powder, umbrella, sewing machine, cell phones, sauces, skimmers, cake servers, spectacles, playing cards, chess board, carom board and more.

SERVICES:

          State run lotteries, Non AC hotels, business class air tickets, fertilizers, work contracts and more services will come under this slab.

18% Tax :

GOODS:

          Most items under this slab which includes Bidi patta, biscuits, refined sugar, foot wear above Rs. 500, pastries & cake, pasta, preserved vegetables, jams, ice creams, mineral water, tissues, steel products, printed circuits, camera, monitors, electrical transformer, CCTV, optical fiber, swimming pools, salad dressings and more.

SERVICES:

          AC hotels that serve liquor, telecom services, IT services, branded garments, financial services, room tariffs between Rs. 2500 and Rs. 7500, restaurants inside five star hotels will come under this slab.

28% Tax :

GOODS:

          Bidis, chewing gum, molasses, chocolates, pan masala, aerated water, paint, deodorants, shaving creams, hair shampoos, dye, sun screen, water heater, dishwasher, weighing machine, washing machine, ATM, vacuum cleaner, hair clippers, automobiles, motor cycles and more.

SERVICES:

          Private run lotteries authorized by state governments, hotels with room tariffs above Rs. 7500, 5 star hotels, race club betting, cinema will come under this slab.

By observing all the tax slabs and item wise taxes we can say that there will be no major changes in our life. Few prices are increasing and few are decreeing but overall there will be same. It is looking like a new body with old soul; we can also say old ink in new bottle.