Introduction
The Goods and Services Tax (GST) in India has a multi-slabs structure, with four primary GST rates: 5%, 12%, 18%, and 28%. Additionally, there is a 0% GST slab for essential goods and services. In this article, we will delve into the GST slabs, their applicability, and implications.
GST Slabs
- 0% GST Slab: Essential goods and services, exempt from GST.
- 5% GST Slab: Goods of mass consumption, low-value items.
- 12% GST Slab: Standard rate for goods and services.
- 18% GST Slab: Higher rate for certain goods and services.
- 28% GST Slab: Luxury goods and services, sin goods.
Goods and Services under each GST Slab
0% GST Slab
- Essential goods: Food grains, cereals, pulses
- Essential services: Healthcare, education
5% GST Slab
- Food items: Meat, fish, poultry, dairy products
- Household items: Soaps, detergents, toothpaste
- Transportation services
12% GST Slab
- Electronics: Mobile phones, laptops, tablets
- Home appliances: Refrigerators, air conditioners
- Hotel accommodation (up to â‚ą1,000)
18% GST Slab
- FMCG goods: Cosmetics, shampoo, soap
- Clothing: Readymade garments
- Restaurant services
28% GST Slab
- Luxury goods: Perfumes, jewelry, luxury cars
- Sin goods: Tobacco, pan masala
- Entertainment services: Cinemas, theme parks
GST Rates for Specific Industries
- Textile Industry: 5% GST on fabrics, 12% on apparel
- Real Estate: 12% GST on under-construction properties
- Automobile Industry: 28% GST on luxury cars
Implications of GST Slabs
- Inflation: Changes in GST rates can impact inflation.
- Business Compliance: GST slabs affect business compliance.
- Consumer Behavior: GST rates influence consumer purchasing decisions.
FAQs
- What is the GST rate on food grains?
0% - Which GST slab applies to restaurant services?
18% - Are luxury cars taxed at 28% GST?
Yes
References
- GST Act, 2017
- GST Rules, 2017
- CBIC (Central Board of Indirect Taxes and Customs) notifications
Additional Resources
- GST portal (gst.gov.in)
- GST Council website (gstcouncil.gov.in)
- CBIC website (cbic.gov.in)
Infographics
[Image description: A diagram illustrating GST slabs]
Table: GST Slabs
| GST Slab | Description |
|---|---|
| 0% | Essential goods and services |
| 5% | Goods of mass consumption |
| 12% | Standard rate for goods and services |
| 18% | Higher rate for certain goods and services |
| 28% | Luxury goods and services, sin goods |
