GST: Here's a table that will help you get the tax rate on the most important items

The Goods and Services Tax is finally about to be rolled out coming weekend and unfortunately for the government, who is leaving no stone unturned to take credit for the biggest tax reform, confusion rules among the small traders.

Reuters

Reuters

For instance on as late as 11 June, the GST Council changed the tax rates for as many as 66 items.

The items that witnessed a change in rate included kitchen staples like pickles and mustard to agarbatti, computer printers, cashews, children drawing books and school bags.

This move came within weeks of the Council fitting over 1,200 items into one of the 5, 12, 18 and 28 percent tax slabs. The rates were revised following complaints from various quarters about high tax incidence on various goods and services.

In a relief to SMEs, the Council also increased the threshold of turnover for businesses which can opt for composition scheme to Rs 75 lakh, from Rs 50 lakh proposed earlier.

This allowed traders, manufacturers and restaurant owners with turnover below Rs 75 lakh can opt for the composition scheme and pay taxes at 1, 2, and 5 percent rates respectively.

Here's a table of tax rates on important goods and services, courtesy BMR Advisors, a tax consultancy and advisory firm:

FMCG and retail

HSNDescription of goodsRate
1904Puffed riceNil
1905Pappad, breadNil
Water, Tender coconut waterNil
1901Mixes and dough5 percent
1902Seviyan5 percent
1905Pizza bread ,rusks, toasted breads5 percent
2106Sweetmeats5 percent
2009Fruit juices12 percent
2101Roasted Chicory, roasted coffee, yeast preparations12 percent
2106Namkeens in ready for consumption form12 percent
1901-1905Preparations for infant use, pasta, noodles, pastries, cakes18 percent
2001-2008Preserved fruits, vegetables, nuts, fruit jams18 percent
2101-2106Extracts, essence and concentrates of  tea or mate, sauces preparations , soups, ice-creams, food mixes including instant food mixes18 percent
2101Extracts, essences and concentrates of coffee28 percent
2106Food preparations not covered elsewhere, protein concentrates, custard powder28 percent
2202Aerated waters containing added sugar or sweeting matter or flavor28 percent plus 12 percent cess
8415Air-conditioners28 percent
8418Refrigerators, freezers and other refrigerating28 percent
or freezing equipment
1905Biscuits18 percent
Chapter 61Articles of apparel and clothing accessories, knitted or crocheted-     5 percent if value not exceeding Rs 1000 per piece
-     12 percent if value exceeds Rs 1000 per piece
Chapter 62Articles of apparel and clothing accessories not  knitted or crocheted-     5 percent if value not exceeding Rs 1000 per piece
-     12 percent if value exceeds Rs 1000 per piece
Chapter 64Footwear gaiters and the like parts of such articles-     5 percent if retail sales price is not exceeding Rs 500 per pair
-     18 percent for other categories of footwear
Chapter 42Articles of leather, saddlery, and harness, travel goods, handbags and similar containers; articles of animal gut-     28 percent
Chapter 71Natural or cultured pearls, precious or semi- precious metals, metal clad with semi-precious metal and articles thereof, imitation jewellery, coin-     3 percent

Automobiles

HSNDescription of goodsRate
87Electrically operated vehicles, including 2/ 3 wheeled electric motor vehicles12 percent
8703Small Cars (length < 4 m ; Petrol < 1200 cc )28 percent plus 1 percent cess
Small Cars (length < 4 m ; Diesel < 1500 cc)28 percent plus  3 percent cess
Mid Segment Cars (engine < 1500 cc)28 percent plus 15 percent cess
Large cars (> 1500 cc)28 percent plus 15 percent cess
Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm)28 percent plus 15 percent cess
Mid Segment Hybrid Cars (engine < 1500 cc)28 percent plus 15 percent cess
Hybrid motor vehicles > 1500 cc28 percent plus 15 percent cess
Hydrogen vehicles based on fuel cell tech > 4m28 percent plus 15 percent cess
8708Parts and accessories of motor vehicles of headings 8701 to 870528 percent

Information technology - goods

HSNDescriptionRate
8523Shrink Wrapped software product (on media)18 percent
8471Laptops, desktops, peripherals, parts, etc18 percent
8443Printers (other than multifunction printers)18 percent
8528Monitors and projectors (capable of connecting to ADP)28 percent
8517Majority of Networking products18 percent
8517Imported mobile phones12 percent
8517Domestically manufactured mobile phones12 percent

Information technology - services

Description of serviceRate
Temporary transfer or permitting the use or enjoyment of any Intellectual Property12 percent
Electronic supply of software18 percent (residuary rate)
Software services, ie, development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software18 percent (residuary rate)
Ambiguity may arise with respect to taxability of electronic software and related services at 12 percent or 18 percent in absence of a specific entry in the rate schedule
IT services including consulting, implementation, advisory 18 percent

Real estate - goods

HSNDescription of goodsRate
Chapter 72Steel18 percent
2523Cement28 percent
6802Marble and granite28 percent
2515Blocks of marble and granite12 percent
Chapter 68Sand lime bricks and fly ash bricks12 percent
2505 & 2517Natural sand, pebbles, gravel5 percent
8428Lifts and elevators28 percent

Real estate - services

Description of serviceInput tax creditRate
Construction of a complex intended for sale to a buyer, wholly or partly, where value of land is included in the amount charged from customerFull input tax credit allowed12 percent
However, in case there is an excess input flow, no refund to be allowed
Composite works contracts (relating to immovable property)Full input tax credit allowed18 percent

Energy

HSNDescription of goodsRate
2701Coal5 percent along plus cess at the rate of Rs 400 per tonne
Chapter 84 and 85Renewable energy devices such as solar power based devices, solar power generating system, wind mills, wind operated electricity generator5 percent
Spare parts for the manufacture of the aforementioned devices
8541PV cells, modules and panels5 percent
8417Industrial or laboratory furnaces and ovens, including incinerators, nonelectric18 percent
8506Primary cells and primary batteries28 percent
9801Project imports18 percent

Hospitality

Description of servicesCredit eligibilityRate
Tour operator servicesWithout credit5 percent
Hotel accommodation
- Hotel where declared tariff is less than Rs 1000 per day or equivalent-Exempt
- Hotel having room tariff more than Rs 1000 and less than Rs 2500With credit12 percent
-  Hotel having room tariff more than Rs 2500 and less than Rs 5000With credit18 percent
- 5 star and above rated hotel where room rent is more than Rs 5000 and above per night per personWith credit28 percent
Restaurant services
- Restaurant with no AC and liquor license at anytime during the yearWith credit12 percent
-  AC or having heating facility or having liquor license or bothWith credit18 percent
-  Restaurant services in 5 star or above rated hotelWith credit18 percent
Air travel booking agent services
-  Domestic bookingsWith credit18 percent on commission or 5 percent of basic fare
-  International bookingsWith credit18 percent on commission or 10 percent of basic fare

Transportation & aviation

 

Description of servicesCredit eligibilityRate
Transportation of passengers by air for economy classWith credit of only input services5 percent
Transportation of passengers by air for other than economy classWith credit12 percent
Transport of goods by air for outbound cargoWith credit18 percent
Transport of goods by air for inbound cargoWithout creditExempted
Lease of aircrafts to scheduled airlines for scheduled operationsWith credit5 percent
Passenger transport by road
-  Renting of motorcabWithout credit5 percent
-  Renting of motorcab (If fuel cost is borne by the service recipient)Not specified18 percent
-   Transport of passengers, by
(i)  Air conditioned contract/stage carriage other than motorcab Without credit 5 percent
(ii) Radio taxi  Without credit  5 percent

Special category goods/ services

 

HSNDescription of goodsRate
Chapter 7, Chapter 10, Chapter 3Foodgrains, pulses, seafood including fish/shrimps, fresh fruits and vegetablesNil
Chapter 9, Chapter 17, Chapter 20Sugar, coffee (other than instant coffee), tea and frozen fruits and vegetable5 percent
Chapter 24Tobacco leaves5 percent on a reverse charge basis
Chapter 24Other tobacco products28 percent
Cess rate may range from 71  percent to 204  percent
Chapter 24Cigarettes and biris28 percent
Cess rate may vary from 5 percent + Rs.1591 per thousand units to 5 percent + Rs.4170 per thousand units

Published Date: Jun 29, 2017 02:11 pm | Updated Date: Jun 30, 2017 03:49 pm


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