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GST Rate Card – How it will impact on your pocket?

GST Rate Card – Much awaited rule of GST will soon become reality. In the final meeting of GST council, GST slabs are already decided.  The government has released 213 pages GST draft containing a complete list of the products including tax rates. The GST rate card given in this document shows which product will get costlier and which product will be cheap.

In some products tax waiver is given. However, in the majority of goods and services sharp rise in the tax rate is notified. There are four tax slabs of GST – 5%, 12%, 18% and 28%. Let’s take a look at GST rate card and, its impact on your pocket.

GST Rate Card – How it will impact on your pocket?

GST Rate Card – Exempted from GST

Following goods are exempted from GST.

  • Any type of Milk and cream
  • Buttermilk unbranded paneer and honey
  • Fresh Fruit and vegetable which has not been preserved
  • Any type of unprocessed and local meat
  • Unprocessed and unbranded wheat, rice, oats and fresh turmeric
  • Common salt, rock salt
  • Medical products and medicines
  • Books, newspaper, journals and maps

Following services are exempted from GST.

  • Fare of Non AC Train
  • Education activities related to IT and healthcare
  • Metro Fare and Local Train Tickets
  • Tariff of Hotels priced under Rs.1000

Also Read – 10 Benefits of Goods Service Tax (GST)

GST Rate Card – 5% Tax Slab

Following goods are taxed @5% under GST rule.

  • Packaged form of Honey, Paneer, Yogurt, Fresh Cream
  • Packaged processed tea and coffee
  • Dry fruits, frozen fruits and preserved veggies
  • Pastry, bakry and other bread products
  • Broomsticks

Following services are taxed @5% under GST rule.

  • Fare of AC Train
  • Fare of economy air travel
  • Cab fare

GST Rate Card – 12% Tax Slab

Following goods are taxed @12% under GST rule.

  • Frozen and Packed Meat Items
  • Butter and Cheese
  • Namkeens, Bhujia and other such edible items
  • Washing Detergents
  • Mathematical and Geometry boxes, Colors Boxes, Pencil Sharpeners
  • Utensils, Sewing Needles, Kerosene and LPG Stoves
  • Household articles made up of Iron, Steel, Copper and Aluminum
  • Telephones both mobile and wireless network
  • Sports Goods, Toys, Combs, Hair Pins, Pens, Pencils

Following services are taxed @12% under GST rule.

  • Fare of Business class air travel
  • Tariff of Non AC Hotels

GST Rate Card – 18% Tax Slab

Following goods are taxed @18% under GST rule.

  • Corn flakes, Cooked or Uncooked Pasta
  • Refined Sugar
  • Artificial honey
  • Soups, Ice Cream, Food Mixes
  • Soy Milk and Soy Drinks, Fruit Pulp or Fruit Juice based Concentrates
  • Tooth Powder, Incense Sticks
  • Plastic Products including kitchenware or other household products
  • Electronic Toys
  • Helmets and Hats
  • Spectacles and it’s lenses

Following services are taxed @18% under GST rule.

  • Liquor serving hotels and bars
  • Tariff of AC Hotels
  • Services related to telecom and Finance

GST Rate Card – 28% Tax Slab

Following goods are taxed @28% under GST rule.

  • Pan, Custard Powder, Pan Masala & tobacco
  • Chewing gum, Bubble gum, Any type of Chocolate
  • Perfumes, Beauty Products & Bathing soaps
  • Plywood, Veneered panels and similar kind of Laminated Wood
  • Mirrors or products with mirror or glass
  • Stoves (expect kerosene and LPG stoves)
  • Primary cells and Batteries
  • Vacuum cleaners, Electric Motor, Video Games Consoles
  • Equipment for Physical Exercise, Gymnastics and Athletics

Following services are taxed @28% under GST rule.

  • Any type of betting and gambling
  • Five star hotels with tariff above Rs.5000

The majority of products are falling under first three slabs i.e 81% and remaining under the last slab of 28%.

How GST will impact on your pocket?

I hope above information about GST tax rate will help you in making your household budget for future.

Do post your query in the comment section below.

Shitanshu Kapadia
Shitanshu Kapadiahttp://moneyexcel.com/
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion. We do not offer any stock tips, investment, insurance or finance product related advice. Please consult a qualified financial planner and do your own due diligence before making any investment decision.
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