GST Rate Structure (5% 12% 18% 28%) Updated Tax Rates & SAC/HSN Codes

GST Rate Structure

GST Rate StructureGoods and Services Tax is a major Tax reform policy introduced by the government to reduce the prices of basic food items in India. GST Rate Structure in India consists of four percentages of rates including 5%, 12%, 18% & 28%. To make things better, the Indian government has kept a large number of items under 18% tax slabs. 

Well, here we are presenting updated Tax Rates & SAC/HSN Codes to figure out the pros and cons of GST on economy. Most of the economists have a positive view point against GST implementation, but some are not in favor of this new tax reform. What do you think of it? Get to know the new GST Rate Structure and generate your own opinion.

GST Rate Structure

Changes In GST Tax Rates 2018

After 25th GST Council meeting on 18th January 2018, GST rates on 29 Goods and 53 Services have been revised. Here’s complete list of new GST rates, so take a look!

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

Check Recent Changes in Rule/Rates: 
GST New Rates

Services Included In The Exemption List

  • Legal services provided to Government
  • Providing information under RTI Act, 2005
  • 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 Key Facts: Benefits of GST in India

GST Rates and its Impact

The GST committee has decided a four-tier Goods and Services Tax (GST) structure that will extend from 5% to 28%. The move is important step towards the execution of the greatest roundabout tax change, which the administration expectations will protect the common man from growth. The setting of rates by the GST board denote a biggest milestone on development towards the rollout of the solitary tax that will substitute different state and central requires and will make a consistent national market for goods and services. The four GST chunks are 5%, 12%, 18% and 28%.

On the basis of the use and type of goods and services, the four GST tax are resolute. The four rates are as follows:

  • 5% – It will be levied on necessary food things of mass utilization. This will incorporate items, for example, flavors, tea and mustard oil.
  • 12% – It will mostly include processed food items.
  • 18% – It will comprise stuffs like soaps, oil, toothpaste, refrigerators and smart phones.
  • 28% – It will consist two tiers: First tier will comprise white goods and cars and the second tier will include sin goods like tobacco products, luxury cars, pan masala and aerated drinks. Also, the second tier will invite 28% plus cess.
  • Zero rate GST will be relevant for the 50% of goods falling under buyer value list. This will likewise incorporate food grains. In Addition the central government has offered power to state government to impose 2% additional or lower tax over beyond the rate of SGST.
  • Zero rate GST will be valid on 50% basic commodities that are included into the Consumer Price Index. This will comprise food grains and is probably upon to help the population and control inflation to an expansive degree.

Get Toll Free Customer Care No: GST Helpline Number

5 Impacts of GST rates on your life

As far back as the Goods and Services Tax was declared, there has been an Air of uncertainty gliding around its effect on the regular man’s wallet. The Finance Minister Arun Jaitley declared the four GST slab rates yesterday – 5%, 12%, 18% and 28% – and India expects to actualize GST from April 1 2017.

While you can read the fundamental about this new tax structure here, we should experience the five ways this four-slab structure impacts your life:

  • Your tryst with comfort wind up become costly. Luxury cars, circulated air through beverages, liquor and will get costly as they will be taxed at 28% or higher. There will be a cess relevant over the peak rate of 228% across luxury goods
  • Smoking will get to very costly as tobacco items will be taxed at 28%. There will also be a cess applicable over the peak rate of 28 percent, inflating the aggregate tax assessment on tobacco items in the scope of 40%-65%.
  • Essential wares like wheat, grains and others won’t fall under the domain of GST and will have 0% tax assessment.
  • Items of mass utilization like shoes, flavors, mustard oil, tea, utensils and garments will get taxed at 5%.
  • Mobile telephones, cleansers, eating out will fall under the 12-18% duty rate and will keep on burning a nominal hole in your pocket.

Read Out: Salient Features of GST

The Impact of GST Rate on Businessmen

Despite the fact that the government is yet to choose which thing falls under which tax section, however until further notice, businesspeople can decide applicable GST rate on goods based on estimates. The GST rate on products will be around be equivalent to the rate determined by up excise duty and VAT imposed at present on such goods. For example, if as of now extract obligation on car is required at the rate of 12.5% and VAT is exacted at the rate of 13.5%, then it has been taxed at 26%. Consequently, it can be reasoned that under GST, assessment will be collected on it at the rate of 28%.

GST Rate Structure

  • Inter-state procurement could demonstrate suitable
  • May open chances to solidify providers/sellers
  • Extra obligation/CVD and Special Additional obligation parts of traditions duty to be replaced
  • Current plans for dissemination of completed goods may never again be ideal with the removal of the concept of duty on manufacturing
  • Changes in duty framework could warrant changes in both acquisition and distribution arrangements
  • Current system structure and item streams may require audit and conceivable adjustment
Pricing and profitability
  • Tax savings funds coming about because of the GST structure would require repricing of items
  • Margins or price mark-ups would should be rethought
Cash flow
  • Removal of the idea of extract duty on assembling could bring about change in income and stock expenses as GST would now be paid at the time of offer/supply as rather than the time or removal of goods from the industrial facility
System changes and transaction management
  • Potential changes to accounting and IT systems in areas of ace data, supply chain transactions, system design
  • Existing open exchanges and balances as on the cut off date should be relocated out to guarantee smooth move to GST
  • Changes to supply chain reports (e.g., buy enroll, deals enlist, administrations enlist), other tax reports and structures (e.g., solicitations, buy orders) require survey
  • Proper measures, for example, preparing of workers, consistence under GST, client instruction, and following of stock credit are expected to guarantee smooth move to the GST administration

Check Out: 
GST Registration Procedure

The key imperatives for companies are:

  • Understand key zones of effect in their business
  • Prepare distinctive situations for the plan and use of GST
  • Continually track arrangement advancement with respect to GST and refresh arranged situations
  • Identify any ranges of unfavorable effect and get ready possibility measures
  • Identify issues and concerns obliging portrayal to specialists and build up a technique for powerful backing

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