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GST: A guide to one nation one tax

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A political Observer. Blogger.

Finally GST (Goods & Service Tax) have been rolled out from July 1, 2017. It replaces the 17 taxes which people had to pay earlier. GST has four rate slabs: 5%, 12%, 18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.

In total government have categorized 1211 items under various tax slabs. Out of which the government have kept 80% of items under 18% tax slab. Lets have a look at what are the things which comes under these tax rates.

Goods and Services Under 5% tax slab:
An array of food items such as Apparels below 1000, footwear below 5oo, fish fillet, packaged food items, cream, skimmed milk powder, branded Paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, cashew nut, cashew nut in shell, raisin, ice and snow, bio gas, coal, kerosene, insulin, postage, stamps, fertilizers, life boats, agarbatti  will be priced at 5 per cent tax.

Transport services like Railways and Airways fall under 5% slab. Small restaurants also come under this slab.

The Goods and Services which are taxed under 5% slab post GST were taxable from 3% to <9% before GST.

Goods and Service Under 12% tax slab:
Apparel above Rs 1000, frozen meat products, butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhujia, namkeen, Ayurvedic medicines, tooth powder, colouring books, picture books, umbrella, sewing machine, cellphones, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and note books, spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games falls under 12% tax slab.

Services like Non-Ac hotels, State run lottery, Business class air tickets, Work contracts also falls under 12 % tax slab.

The Goods and Services which are taxed under 12% slab post GST were taxable from 9% to <15% before GST.

Goods and Services Under 18% tax slab:
Items like Foot wear more then 500 , Biscuits (All categories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, Trademarks , Goodwill , Software, printed circuits, camera, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machinery], Printers [other than multifunction printers] , Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Swimming pools and padding pools, Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings falls under 18% tax slab.
Services like IT , Telecom , AC hotel that serve liquor , Restaurants inside 5 star hotels , Financial services , Branded Garments will fall under 18% tax slab.

The Goods and Services which are taxed under 18% slab post GST were taxable from 15% to <21% before GST.

Goods and Services Under 28% tax slab:
Goods such as Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use falls under 28% tax slab.

Services such as Private run lotteries authorized by states, cinema, race club betting falls under the 28 % tax slab.

The Goods and Services which are taxed under 28% slab post GST were taxable at 21% and above before GST.

Except the above mentioned there are Goods and Services which have been exempt from any taxes, which means there will be 0% tax or No tax on them.

Items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, Besan, bread, Prasad, salt, Bindi, Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery, Salt- all types, Kajal, Children’s’ picture, drawing or colouring books falls under 0% or No Tax categories.

Services like Low budget holiday, Grandfathering also falls under No Tax category.

So at last we are in a new GST era, an era of One Nation One Tax.

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A political Observer. Blogger.
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