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

HSN Description of goods Rate
1904 Puffed rice Nil
1905 Pappad, bread Nil
Water, Tender coconut water Nil
1901 Mixes and dough 5 percent
1902 Seviyan 5 percent
1905 Pizza bread ,rusks, toasted breads 5 percent
2106 Sweetmeats 5 percent
2009 Fruit juices 12 percent
2101 Roasted Chicory, roasted coffee, yeast preparations 12 percent
2106 Namkeens in ready for consumption form 12 percent
1901-1905 Preparations for infant use, pasta, noodles, pastries, cakes 18 percent
2001-2008 Preserved fruits, vegetables, nuts, fruit jams 18 percent
2101-2106 Extracts, essence and concentrates of  tea or mate, sauces preparations , soups, ice-creams, food mixes including instant food mixes 18 percent
2101 Extracts, essences and concentrates of coffee 28 percent
2106 Food preparations not covered elsewhere, protein concentrates, custard powder 28 percent
2202 Aerated waters containing added sugar or sweeting matter or flavor 28 percent plus 12 percent cess
8415 Air-conditioners 28 percent
8418 Refrigerators, freezers and other refrigerating 28 percent
or freezing equipment
1905 Biscuits 18 percent
Chapter 61 Articles 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 62 Articles 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 64 Footwear 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 42 Articles of leather, saddlery, and harness, travel goods, handbags and similar containers; articles of animal gut -     28 percent
Chapter 71 Natural or cultured pearls, precious or semi- precious metals, metal clad with semi-precious metal and articles thereof, imitation jewellery, coin -     3 percent

Automobiles

HSN Description of goods Rate
87 Electrically operated vehicles, including 2/ 3 wheeled electric motor vehicles 12 percent
8703 Small 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 cc 28 percent plus 15 percent cess
Hydrogen vehicles based on fuel cell tech > 4m 28 percent plus 15 percent cess
8708 Parts and accessories of motor vehicles of headings 8701 to 8705 28 percent

Information technology - goods

HSN Description Rate
8523 Shrink Wrapped software product (on media) 18 percent
8471 Laptops, desktops, peripherals, parts, etc 18 percent
8443 Printers (other than multifunction printers) 18 percent
8528 Monitors and projectors (capable of connecting to ADP) 28 percent
8517 Majority of Networking products 18 percent
8517 Imported mobile phones 12 percent
8517 Domestically manufactured mobile phones 12 percent

Information technology - services

Description of service Rate
Temporary transfer or permitting the use or enjoyment of any Intellectual Property 12 percent
Electronic supply of software 18 percent (residuary rate)
Software services, ie, development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software 18 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

HSN Description of goods Rate
Chapter 72 Steel 18 percent
2523 Cement 28 percent
6802 Marble and granite 28 percent
2515 Blocks of marble and granite 12 percent
Chapter 68 Sand lime bricks and fly ash bricks 12 percent
2505 & 2517 Natural sand, pebbles, gravel 5 percent
8428 Lifts and elevators 28 percent

Real estate - services

Description of service Input tax credit Rate
Construction of a complex intended for sale to a buyer, wholly or partly, where value of land is included in the amount charged from customer Full input tax credit allowed 12 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 allowed 18 percent

Energy

HSN Description of goods Rate
2701 Coal 5 percent along plus cess at the rate of Rs 400 per tonne
Chapter 84 and 85 Renewable energy devices such as solar power based devices, solar power generating system, wind mills, wind operated electricity generator 5 percent
Spare parts for the manufacture of the aforementioned devices
8541 PV cells, modules and panels 5 percent
8417 Industrial or laboratory furnaces and ovens, including incinerators, nonelectric 18 percent
8506 Primary cells and primary batteries 28 percent
9801 Project imports 18 percent

Hospitality

Description of services Credit eligibility Rate
Tour operator services Without credit 5 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 2500 With credit 12 percent
-  Hotel having room tariff more than Rs 2500 and less than Rs 5000 With credit 18 percent
- 5 star and above rated hotel where room rent is more than Rs 5000 and above per night per person With credit 28 percent
Restaurant services
- Restaurant with no AC and liquor license at anytime during the year With credit 12 percent
-  AC or having heating facility or having liquor license or both With credit 18 percent
-  Restaurant services in 5 star or above rated hotel With credit 18 percent
Air travel booking agent services
-  Domestic bookings With credit 18 percent on commission or 5 percent of basic fare
-  International bookings With credit 18 percent on commission or 10 percent of basic fare

Transportation & aviation

 

Description of services Credit eligibility Rate
Transportation of passengers by air for economy class With credit of only input services 5 percent
Transportation of passengers by air for other than economy class With credit 12 percent
Transport of goods by air for outbound cargo With credit 18 percent
Transport of goods by air for inbound cargo Without credit Exempted
Lease of aircrafts to scheduled airlines for scheduled operations With credit 5 percent
Passenger transport by road
-  Renting of motorcab Without credit 5 percent
-  Renting of motorcab (If fuel cost is borne by the service recipient) Not specified 18 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

 

HSN Description of goods Rate
Chapter 7, Chapter 10, Chapter 3 Foodgrains, pulses, seafood including fish/shrimps, fresh fruits and vegetables Nil
Chapter 9, Chapter 17, Chapter 20 Sugar, coffee (other than instant coffee), tea and frozen fruits and vegetable 5 percent
Chapter 24 Tobacco leaves 5 percent on a reverse charge basis
Chapter 24 Other tobacco products 28 percent
Cess rate may range from 71  percent to 204  percent
Chapter 24 Cigarettes and biris 28 percent
Cess rate may vary from 5 percent + Rs.1591 per thousand units to 5 percent + Rs.4170 per thousand units

Updated Date: Jun 30, 2017 15:49 PM

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