GST 2019: New rate list for various consumer products

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There is no tax added for some stationary items
There is no tax added for some stationary items

New Delhi : GST or Goods and Services Tax in India came into effect on 1st July 2017. It is an Indirect Tax which has replaced many Indirect Taxes on consumer goods in the country. Some major advantages GST rules include removal of cascading tax effect, lesser complainces, defined solution for e-commerce and so on.

There is a dedicated GST council which conducts meeting from time to time to revise the GST rates for various products. Finance Minister Arun Jaitley said that the government wanted to keep the GST rates close to the original rates. The latest revised GST rates for some common items are mentioned below.

GST tax rates on house-hold products

Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal , Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab will be available at 5% tax rates.

Processed food will charge 12% tax rate

  • Hair oil, toothpaste and soaps, capital goods and industrial intermediaries are covered 18% slab
  • Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks , High-end motorcycles  are included in 28% tax slab
  • Basic household items like toothpaste and hair oil, which currently attract 28% tax, will be taxed at 18% only.
  • Sweets will also be taxable at 5%.
  • Tax rates on coal has also been reduced from 11.69% to just 5% in order to relieve the pressure on power industries.

On the other hand, there is no tax added for commodities like 

  • Hulled cereal grains like barley, wheat, oat, rye, etc.
  • Bones and horn-cores unworked and waste of these products.
  • Palmyra jaggery, All types of salt
  • Dicalcium Phosphate (DCP) of animal feed grade
  • Kajal, Sanitary Napkins
  • Picture books, colouring books or drawing books for children
  • Human hair dressed, thinned, bleached or otherwise worked
  • Unit container-packed frozen branded vegetables (uncooked/steamed)
  • Vegetables preserved using various techniques including brine and other preservatives that are unsuitable for immediate human consumption.
  • Music Books/manuscripts

5% GST tax rate slab has been added on the following consumer products

  • Cashew nuts/cashew nuts in shell, Ice and snow
  • Bio gas, insulin, aggarbatti, kites
  • Coir mats, matting and floor covering
  • Pawan Chakki that is Wind-based Atta Chakki
  • Postage or revenue stamps, stamp-postmarks, first-day covers, etc.
  • Numismatic coins
  • Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability
  • Fly-ash blocks, walking sticks, natural cork, marble rubble

GST rate on cars has been fixed at 28% for all personal use vehicles featuring a petrol or diesel driven engine. 

The current GST rate on gold is 3%. However, a 5% GST rate is applicable to making charges applied to gold jewelry in case the manufacturing is outsourced

From 1st April, the applicable GST Rates on residential real estate will be 5% for non-affordable housing properties and 1% for affordable housing properties. No GST is applicable in case you are purchasing a ready to move in property.