RATES OF GST,APPLICABILITY OF RATES OF GST, NIL RATED SUPPLY, 5%, 18%, 12%, 28%

 APPLICABILITY OF RATES OF GST

RATES OF GST

It is very important to know the rates of GST because time to time it vary as per the notification issued by the Government. One should be aware with the rate of a particular product in the continuance of business works.

 

The IGST and CGST Acts don't demonstrate GST rate structure. As per section 9 of CGST Act, rate of CSGT will be advised by Central/State Government. The rate will not surpass 20%. Same provision will be in SGST Act of each State. 

Thus the GST rate for intra-State supplies won't surpass 40% [20% CSGT and 20% SGST]. 

Accordingly as per section 5 of IGST Act, rate of IGST will be as advised by Central Government. The rate will not surpass 40%. 

CSGT and IGST rates will be same all over India. SGST rates are likewise excepted to be same all over India. Be that as it may, since State Governments have sovereign powers to levy GST, the SGST rates may change from State to State, right now they are same. 

UGST Rates will be same as CGST Rates as these rates are inside purview of Central Government. 

The GST rates on goods are notified based on Customs Tariff Act, which depends on HSN code. In any case, however Customs Tariff has eight-digit code, just initial four digits are utilized to notify GST rates. Thus, in many times, for same four digit item, GST rates may differ contingent upon depiction of merchandise. 

In case of Services, 6 digit code is used to classify a service. Initial two digits are always 99.

NIL RATED SUPPLY

Following are the items included under Nil rated supply :

Nil rated Supply Includes - Fresh Fruits and Vegetables, frozen or provisionally preserved vegetables, coffee beans, wheat, rye, rice, Flour, Besan, Bread, jaggery, pappad, Prasad, Salt Fresh Meat, Fish Chicken, Eggs, fresh Milk, Butter Milk, Live animals. live poultry, Curd, Natural Honey, unpacked rice, , Bindi, Sindoor, Stamps, Duty credit scrip, sanitary towels or napkins, rakhi (other than made of gold, silver, platinum, diamonds, pearls), precious stones)Judicial Papers, printed Books, Newspapers, Music (printed or manuscript), Bangles, Handloom, Pooja equipment, jute, khadi, national flag, raw silk, electrical energy, human blood, human hair, hearing aids, passenger baggage, gift items to President, Prime Minister, Chief Minister etc.

5% TAXED ITEMS

5%-  Packaged food (Wheat, Barley, Oats, Maize, Rice, Aata, Maida, Jawar, Corn, Honey), Fish Fillet, Cream, Skimmed Milk Powder, Eggs, Branded Paneer, Frozen Vegetables, Coffee, Tea, Spices, Pizza Bread, Rusk, Cashew nuts, Edible Oils, Sabudana, Kerosene oil PDS, Coal, Ores, Ethyl alcohol supplied for blending with petrol, Marbel and travertine, specified Medicines, Stent, Life boats, handmade safety matches, newsprint, footwear of sale value not exceeding RS. 1,000 per pair, Natural cork, sugar, cotton yarn, nature fibre, silk yarn, silk woven fabric, cotton fabrics, embroidery, articles of apparel i.e. readymade garments, hats, caps upto RS. 1,000, fly ash bricks, railway locomotives and parts, Renewable energy devices (value to be taken as 70% if provided with works contract service) [Item in italics amended/ inserted w.e.f. 1-1-2019]

GST rate in case of food and drinks supplied in running trains and on platforms is uniform @ 5% without Input Tax Credit- Order No.2 [F No. 354/03/2018- TRU] dated 31-3-2018.

GST rate in case of goods for petroleum operations and coal bed methane operations is 5% - Notification Nos. 3/2017 –CT (Rate) both dated  28-6-2017 in respect of exempted goods.

E-waste, Khakhra, plain chapatti or roti, Unbranded Namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, other than those put up in unit container- inserted w.e.f. 13-10-2017

12% TAXED ITEMS

12%- Live horses, Condensed milk, Butter, Cheese, Ghee, Dry fruits in packaged form, Animal Fat, Sausage, Fruit Juices, branded namkeens, bhujia in unit containers, Ayurvedic Medicines, Tooth Powder. Tableware and  kitchenware of wood, Colouring Books, Picture Books, Corrugated paper, cartons, exercise books, calendars, yarn, carpets, textile fabrics, Umbrella, Sewing Machine, table kitchen articles, knives, LED lamps, Cell- phones, readymade garments above RS. 1,000, sprinkles, drip irrigation system including laterals, agricultural machinery, permanent transfer of IPR (except software).

Lateral of sprinklers and sprinklers irrigation system (consisting of nozzles, lateral and other components will also be taxable @ 12%.

18% TAXED ITEMS

Flavoured Refined Sugar, Pasta, sugar confectionery, Cornflakes, Pastries and Cakes, Preserved Vegetables, Jams, Sauces, Soups, Ice Cream, Instant Food Mixes, Mineral Water, Ethyl alcohol, Slag , Perfumes, firewords, Steel Products, Printed Circuits, Camera, Speakers and Monitors, Biscuits, Paints and varnishes, Footwear RS. 1,000  and above per pair ( the limit was RS. 500 upto 27-7-2018), tendu leaves, artificial fibre, synthetic yarn like nylon, polysters, Computers, hand tools, Machinery for industrial use, machine tools. Refrigerators and freezers, household and laundry type washing machines, washing machines, shavers, vacuum cleaners, water heaters, TV sets upto screen size 32 inch, Special purpose motor vechicles, work trucks, trailers, scent sprays, digital camera, video camera recorders, video games, Ball bearings and roller bearings, CCTV, Printed circuits, spectacles, clocks, watches, permanent transfer of IPR of software, All other goods not elsewhere specified [Items in italics inserted w.e.f. 1-1-2019 taken out of 28% list].

28% TAXED GOODS

Molasses, Pan Masala, Aerated waters, Tobacco products, Cement tyres, IC Engines, Air conditioning Machines, Dish washers, Motor vehicles, Motor cycles, TV set of screen size of  32 inches and above, Computer Monitors 20 inch and above, Motor Cycles, Aircrafts for personal use, Revolvers, Video Games, Actionable claim in form of betting, Gambling , Horse racing in race club.

Lottery Tickets - GST rate will be 12% in case of State run lotteries and 28% in case of lotteries authorised by State Government (run by private persons). Tax on lottery will be collected at first stage under reverse charge. Later, there will be no GST on subsequent of lottery tickets. The valuation will be 100/112 or 100/128 of face value.