GST: taxes set on a four slab rate – 5%, 12%, 18% and 28%

gstThe Goods and Services Tax (GST) which has scheduled to be implemented from 1 July, the government finalised tax slabs for various goods and services.

According to the experts below is a listing of the goods and services will become cheaper or costlier after the GST comes in to force:-

Goods that will be cheaper

Corn flakes, Biscuits, Medicine, Ice cream, Packaged tea and coffee, Watches, Sweets, Cheese, Masala, Soaps, Hair oils, Two-wheelers, Toothpaste etc.

Services that will be cheaper

Restaurants, Dhabas, AC train travel, Air travel, Radio taxi, Movies and Entertainment services including others


Goods that will be costlier 

Cigarettes, Mobile phones, Butter, Packaged chicken, Bhujia, Edible oil, Air- coolers and conditioners,  Refrigerators, Washing machines, Coal, Steel, Computers – Laptops, Desktops, Monitors and printers,
Electronic Goods, Paint

Services that will be costlier

Online shopping, Mobile phone bills, Insurance premiums and other fees, Banking charges, Internet wifi
DTH services, School fees, Courier services includign others.
The taxes are set on a four slab rate – 5%, 12%, 18% and 28%.

Exempted from GST

Goods Services
  • Any sort of unprocessed and local meat
  • Pasteurized form of milk, Separated Milk, Fresh Milk and Cream
  • Buttermilk, Unpackaged and Unbranded Paneer and Honey
  • Fresh fruits and vegetables which have not been preserved
  • Unroasted coffee beans unprocessed tea leaves
  • Unprocessed and Unbranded Fresh turmeric, Wheat, Rye, Barley, Oats, Maize, Rice and Millet.
  • Non-aerated unprocessed Water
  • Common Salt, Kala Namak and Rock Salt
  • Medical Products and Medicines
  • Books (printed which includes Braille books), Newspapers, Journals, Maps, Atlas, Globes
  • Tariff of Hotels priced under Rs 1,000.
  • Metro Fare, Local Train Tickets
  • Fare of Non AC Train
  • Education and activities related to it and Healthcare Services

5% Slab Rate

Goods Services
  • Packaged form of Honey, Paneer, Yogurt, Fresh Cream etc.
  • Herbs, Dry Fruits, Frozen Fruits and Veggies or used in preservative solutions,
  • Processed, roasted and packaged Coffee, packaged and processed Tea
  • Processed and packaged Spices like Cinnamon Cloves, Nutmeg, Mace, Cardamom, Thyme, Bay leaves etc.
  • Mixture for making Bread, Pastry and other Bakery.
  • Carriages for disabled persons (both Motorized Carriages and Mechanically Propelled Carriages)
  • Broomsticks
  • Fare of AC Train Travel
  • Fair of Economy Air Travel
  • Cab Fare (includes Ola, Uber)

12% Slab Rate

Goods Services
  • Frozen and Packed Meat Items
  • Butter and Cheese
  • Namkeens, Bhujia and other such edible items
  • Washing Detergents.
  • Books for Entertainment and Education (Printed on illustrated paper)
  • 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
  • Blades and Paper Knives
  • Telephones (both Cellular Network and Wireless Networks)
  • Sports Goods, Toys, Combs, Hair Pins, Pens, Pencils, Crayons, Tampons, Sanitary Napkins, Clinical Diapers.
  • Tariff of Non AC hotels
  • Fare of Business Class Air Travel

18% Slab Rate

Goods Services
  • Refined Sugar (which includes Colors and Flavours)
  • Artificial honey
  • Cooked or Uncooked Pasta, Corn flakes, Bulgar Wheat
  • Waffles and Wafers
  • Soups, Ice Cream, Food Mixes (Instant Food Mixtures and same sort of edibles)
  • Sharbat, Soy Milk and Soy Drinks, Fruit Pulp or Fruit Juice based Concentrates
  • Tooth Powder, Agarbatti (Incense Sticks)
  • Products made up of Plastic (like tableware, kitchenware, other household articles)
  • Electronic Toys
  • Facial Tissues, or any kind of paper paper related products
  • Helmets and Hats (manufactured from Textile Fabric)
  • Spectacles and it’s lenses
  • Tariff of Air Conditioned Hotels
  • Liquor serving Hotels and Bars
  • Tariff of Hotels ranging in between Rs 2,500 to Rs 5,000
  • Services relating to Telecom and Finance

28% Slab Rate

Goods Services
  • Molasses, Chewing gum, Bubble gum, White chocolate (which does not contain cocoa)
  • Any sort of Chocolate and preparations which contain cocoa
  • Churn for pan, Custard Powder, Pan Masala
  • Perfumes, Beauty Products (includes sunscreen and sun tan products)
  • Bathing soaps
  • Plywood, Veneered panels and similar kind of Laminated Wood
  • Mirrors or products with mirror or glass, and wood related wall coverings
  • Stoves (expect kerosene and LPG stoves)
  • Air Heaters and Hot Air Distributors
  • Primary cells and Batteries
  • Vacuum cleaners, Electric Motor, Video Games Consoles
  • Equipment for Physical Exercise, Gymnastics and Athletics
  • Five Star Hotels which has a Tariff ranging above Rs 5,000
  • Race Club Betting
  • Consuming Films

Majority of the products come under the first three slabs i.e 81% and the rest come under the last slab (28%).

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