GST New Rates | Recent Changes in Rule/Rates, GST Slabs for Small Traders

GST New Rates

GST New RatesOn 18th January 2018, a panel of federal and state finance ministers had conducted a meeting and announced the much-awaited GST New Rates. Recent Changes in rule / rates of GST indicates GST tax slabs range from 0% (Nil) to 31% for the benefit of Small Traders.

GST New Rates in India 2018 includes major changes in GST tax on 29 goods and 53 services. New GST Changes are made after taken into consideration the demand of items, their supply and the income of ultimate consumer.

The government is making great efforts to reduce the prices of basic food items in India. Where Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, other eatables including cereals, milk will be exempt under GST. For complete GST New Rates list, scroll down the page!

GST New Rates

Major Changes In GST Tax Rates 2018

Checkout Revised Rates On 29 Goods and 53 Services After 25th GST Council meeting on 18th January 2018.

Rate of GST Goods or Services
Goods taxed at
Parts used to manufacture
hearing aids Vibhuti and
De-oiled rice bran
Reduced from
28% to 18%
Old and used motor vehicles

(medium and large cars and SUVs)
without ITC, Public transport Buses
that run on Biofuel, Services of joy
rides, Go-karting

Reduced from
28% to 12%
 Old and used motor vehicles
(other than medium and large
cars and SUVs) without ITC
Reduced from
18% to 12%
Drinking water packed in 20
litres bottles, Sugar boiled
Confectionery, Drip irrigation
system, sprinklers, Biodiesel,
Services of construction of metro
/ mono-rail, mining of petrol crude
Reduced from
18% to 5%
 LPG for household use, Tamarind
Kernel Powder, Mehendi paste in
cones, Raw materials and
Consumables needed for Launch
vehicles/satellites, Services of
Reduced from
12% to 5%
 Velvet fabric( Without Refund of
ITC), Articles of straw, of esparto
or of other plaiting materials
Reduced from
3% to 0.25%
 Diamonds and precious stones
Rate Increased
from 0% to 5%
 Rice bran (other than de-oiled
rice bran)
Rate Increased from
12% to 18%
 Cigarette filter rods

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 GST Helpline Number

Services Included In The Exemption List

  • Providing information under RTI Act, 2005
  • Legal services provided to Government
  • Admission to, or conduct of examination

GST Rates Structure

0% Milk Kajal
Eggs Educations Services
Curd Health Services
Lassi Children’s Drawing &
Colouring Books
Unpacked Foodgrains Unbranded Atta
Unpacked Paneer Unbranded Maida
Gur Besan
Unbranded Natural Honey Prasad
Fresh Vegetables Palmyra Jaggery
Salt Phool Bhari Jhadoo
5% Sugar Packed Paneer
Tea Coal
Edible Oils Raisin
Domestic LPG Roasted Coffee Beans
PDS Kerosene Skimmed Milk Powder
Cashew Nuts Footwear (< Rs.500)
Milk Food for Babies Apparels (< Rs.1000)
Fabric Coir Mats, Matting &

Floor Covering

Spices Agarbatti
Coal Mishti/Mithai (Indian Sweets)
Life-saving drugs Coffee (except instant)
12% Butter Computers
Ghee Processed food
Almonds Mobiles
Fruit Juice Preparations of Vegetables,
Fruits, Nuts or other parts
of Plants including Pickle
Murabba, Chutney, Jam, Jelly
Packed Coconut Water Umbrella
18% Hair Oil Capital goods
Toothpaste Industrial Intermediaries
Soap Ice-cream
Pasta Toiletries
Corn Flakes Computers
Soups Printers
28% Small cars (+1% or 3% cess) High-end motorcycles
(+15% cess)
Consumer durables
such as AC and fridge
Beedis are NOT included here
Luxury & sin items like
BMWs, cigarettes and aerated
drinks (+15% cess)

Items moved to 12% GST slab On January 18:

  • Bio-diesel
  • Bio-pesticides
  • Mechanical Sprayer
  • Sugar boiled confectionery
  • Drip Irrigation system
  • Fertilizer grade Phosphoric acid
  • Bamboo wood building joinery
  • Drinking water packed in 20 litre bottles


  • State-run lotteries
  • Non-AC hotels
  • Business class air ticket
  • Fertilisers
  • Work contract

Read Out:
 11 Benefits of GST in India

New GST Rates

As per the 23rd GST Council meeting that was conducted on 10th November 2017, Rates for 178 items have been reduced from 28% to 18%.

1 % GST Rate for manufacturers
and traders under composition
Reduced from 28% to 18%  W.e.f. 15th Nov 2017 –
Shampoo, Perfume, tiles, watches
Reduced from 28% to 12%  Wet grinders, tanks
Reduced from 18% to 12%  Condensed milk, refined sugar,
diabetic food
Reduced from 12% to 5% Desiccated coconut, idli dosa
batter, coir products
Reduced from 5% to Nil Duar meal, khandsari sugar,
dried vegetables
5% For Restaurants within hotels,
and room tariff less than Rs. 7,500.
Also, the credit of ITC paid on inward
supplies cannot be taken.
18% For Restaurants within hotels, and
room tariff greater than Rs. 7,500.
Credit of ITC paid on inward supplies
can be availed.
18% Outdoor catering continues to be
charged at 18% with the availability
of ITC on inward supplies

Check Out:
GST Registration Procedure

The council has imposed 18 % GST on capital goods and industrial intermediate items to make favorable impact on domestic manufacturers. If we talk about prices of coal, it will be taxed at 5 percent against current 11.69 per cent. This in turn will be productive for the power sector and heavy industries which uses coal.

Rate of Toothpaste, hair oil, and soaps will also experience a drop in GST Tax Rate and these items will be taxed at 18 percent, where today they are falling under 28 percent GST tax list.

Read More On:
Salient Features of GST

Besides this, the council has also announced that for restaurants serving alcohol, 18 per cent GST will be imposed. Education sector and Healthcare industry will be exempted from GST tax bracket. Also, the services on Non-AC restaurants will be 12 per cent from now.

: This is all about GST New Rates, for more updated information, stay in touch with us through our web portal.

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