GST Rates 2023 – Complete List of Goods and Service Tax Rates, Slab & Revision

There has been much debate on GST tax rates recently amongst the trading community and the GST council. The GST council of members has held several rounds of meetings to revise GST rates. The latest GST rates show a reduction of 6% to 18% in GST rates for various commodities across most categories.

GST is a tax levied for the consumption of goods and services. The tax is applied by the supplier of products and services while billing customers. GST is a unified and simplified taxation system that replaced the earlier goods and services taxation system of VAT. GST is applied in a simplified structure along the supply chain.

Latest GST tax slab rates for goods categories

The official GST portal publishes information on the latest GST tax slab rates. The list is large, and sellers would have to find the rates applicable to their trade. For example, if a home appliances seller wants to know the latest applicable GST rates, then the rate would have to be searched under a specific category. Below is the information based on the last published GST rates for broad categories of commodities.

• GST on food and beverages items

Several items under the category have reduced GST rates. Those with 12% GST have 5% GST, those with 18% earlier now have 12% GST, and those with 28% have 18% GST.

• GST on household goods of daily use

New GST rates stand reduced for several items under the category of household goods. Those with earlier 18% GST now have 12% or 5% GST. Those with 28% of GST have 18%, 5%, and even nil GST rates.

• GST on educational items

For several goods under the category, GST rates have been reduced from 28% to 12%

• GST on medical and health items

For goods under the medical and health category, GST stands reduced from 12 % to 5% and 0% for separate items.

• GST on agriculture items

Agriculture items with an earlier GST of 12% have 5% GST. Items under the category with an earlier GST rate of 18% now have reduced GST of 12%.

• GST on infrastructure/fuel/environment items

Items in this category with an earlier GST of 28% now have a GST of 18%. Items having a GST rate of 18% previously now have 12%.

• GST on safety and security items

No major changes have been announced from earlier prevailing rates of 18%.

• GST on miscellaneous items

Several items with a GST of 28% now have 18% GST, those with 18% now have 12%, and those with 5% now have 0% GST.

Latest GST tax slab rates for services category

Unlike goods categories, services are categorized under the applicable tax slab rates. No major changes in GST service rates have been announced for service category items. To know the GST rate applicable, the service provider can start from nil GST rates which has the largest number of listed services under it. Several services may become eligible for 0% GST rate after submission of necessary forms or fulfillment of required processes.

Services with 0% GST rates

Comprise of a long list of service items that include: 

• Services by autonomous bodies, government bodies, educational institutions, religious institutions, medical, and health care institutions.
• Services provided for charity purpose, arts or culture, charitable sports defined u/s 12 AA of IT act.
• Folk culture performances, performance arts, circus, dance, drama shows for which ticket is not more than Rs. 250 per person.
• Services rendered to a foreign diplomat, UN organizations, and the Indian consulate
• Services of socially benefitting nature.

Services with 5% GST rates

Include the following services:

• Aircrafts leasing by scheduled airline for scheduled operations
• Space selling for print media advertisement
• Tour operator services
• Book printing, newspaper printing
• Natural textile yarn, natural fiber making, animal skin processing
• Polishing and made of precious metals and stones.

Services with 12% GST rates

Include the following services:

• Food and drinks supply at restaurants having AC, central heating but not a liquor license
• Accommodation services charging Rs. 1000 per day and above but less than Rs. 2500 per day.

Services with 18% GST rates

• Air transport of passengers in non-economy class
• Foreman services for chit fund
• Intellectual property rights transfer (permanent/temporary) services barring IT software
• Buildings constructed for sale purpose
• Food and drinks supply at restaurants with liquor serving license, AC, central heating, outdoor catering.
• Accommodation services with charges above Rs 2500 per day but less than Rs 7500 per day.
• Services under bundled foods and drinks supply and accommodation services
• Services listed under section 2 clause 119 of GST Act
• Circus, Indian classical dance, folk dance, theatre performances, cinema with tickets less than Rs. 100

Services with 28% GST rates

Includes accommodation services that charge Rs. 7500 per day or more, entertainment services, sports, race-course, casino, ballet, films.

New GST Rates Table:

GST Rates News

Petroleum Minister Hardeep Singh Puri Proposed to Bring Petrol Under GST

On Monday, Hardeep Singh Puri, the Petroleum and Natural Gas Minister, disclosed that the Central government agrees to bring petrol and diesel under the Goods and Services Tax aka GST regime. Despite this proposal, the states wouldn’t agree to this move. Liquor and energy come under revenue-generating items, particularly for the states. However, in case the states cooperate with this thought, the Government is ready to release the statement.

Yet the issue remains in implementation and needs to be addressed by the finance minister. Liquor and energy are the initial two assets that generate revenue for the states. Only the Central government seems troubled about inflation and additional things. Even Hardeep Puri kept the proposal that the Kerala High Court had urged the issues be placed before the GST Council.

Though the finance minister doesn’t seem to be on good terms regarding the GST proposal, as far as GST is concerned, the authority should look into a cooperative federal system. He also justified the reason behind the jump in petrol and diesel prices, in fact, India has faced modest increases in recent years.

Talking about North America, the fuel prices hiked up by 43% in a single year, however, in India it increased relatively by 2%. India is the only bright spot in the world according to Hardeep Singh Puri. He also referenced Morgan Stanley along with IMF to underline the adaptability of the Indian economy amid a global turmoil.

News Updated Date: 24th November 2022

Tax rates changed by GST Council – these items are now more expensive

Rate hikes were approved while exemptions for many items consumed over a large scale were withdrawn. The meeting was chaired by Finance Minister Nirmala Sitharaman.

Casinos, online gaming, and lotteries will be subject to 28 percent GST, but the GST Council passed the proposal. The compensation window for states was not extended. The GST Council will meet again in August. 15 more days have been given to it to sort out the valuation mechanism and submit the report.

What becomes expensive?

• Solar water heaters, leather goods, textile works, 5-12%
• Printing and writing ink as well as LED lights tax at 18%
•  Daily rent of Rs 5,000 Hotel rooms, except ICU,  taxed 5% w/o  input tax credit.
• E-waste 5 -18%
•  5%- Coffee beans, unprocessed green leaves of tea, wheat bran and de-oiled rice bran

News Updated Date: 05 July 2022

143 items may see upward revision in GST rates; states to give their views

The all-powerful GST Council has asked for the views of states on hiking rates on 143 items, most of which are in the 18% slab at present. The proposal is seen as a part of a long-considered rate rationalization move under the Goods and Services Tax (GST) regime to lift government revenues.

Of the 143 items in the list, about 92 percent of them are proposed to be shifted from the 18 percent tax slab to the top 28 percent slab.

It should be recalled that the GST Council, the governing body for the indirect tax regime, had taken decisions regarding rate cuts on many of these items in November 2017 and December 2018 in the run-up to the 2019 Lok Sabha polls. Rates for items that were reduced in the November 2017 meeting held in Guwahati and in the December 2018 meeting may now get reversed.

News Updated Date: 06th June 2022

The 5% rate is said to be reformed next month by GST Council

The GST council is coming up with plans to do away with the 5 percent rate to increase revenue for state government. It is likely to move some mass consumption goods to 3% and others to 8%. The existing GST structure has 4 tiers with 5, 12, 18, and 28%. According to this scheme, luxury and expensive goods attract the most the highest tax. There is also a list of unbranded food items that do not attract a cess collection. Essential goods have been exempted from the scheme. Sources also claim to raise the 5% slab to either 7 or 8 or 9% after discussions with the finance ministers of both Centre and the states. This change in the GST collection is crucial for states to become self-reliant.

News Updated Date: 27-05-2022

Coaching institutions to pay 18% goods and services tax on composite supply

The Central Board of Indirect Taxes and Customs (CBIC) stated that the coaching centers have to compulsorily pay Goods and Services Tax (GST) of 18% on their bundled supplies and services to the students termed as their composite supply of them. Students must pay a hefty amount to join such coaching centers, but these institutions deposit GST on individual commodities where rates are comparatively lower, and therefore it causes subdued payments. Such items are bags, books, other stationery and so on. Vivek Johri, chairman of CBIC, said that these bundled services are called ‘Composite Supply .’For instance, he mentioned a tax ignorance case of RS. 3.6 crores that were found by the commiserate of Alwar CGST.

Updated Date: 03-03-2022

The GST Council defers rate hike on textile

At the 46th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman and the State counterparts, the council decided to defer the rate hike on textiles from 5% to 12%. The meeting took place in New Delhi on Friday. 

States like West Bengal, Gujarat, Delhi, Tamil Nadu, and Rajasthan have opposed the hike in the GST (Goods and Services Tax) rate on textiles to 12 percent, from 5 percent, with full effect from Jan 1, 2022. They claimed that this rate increase would only make things difficult for MSMEs and make the ‘poor man’s clothing expensive.’

Delhi deputy chief minister Manish Sisodia asked to withdraw the raise. He added that Delhi does not favor these moves to raise the rate hike.

Tamil Naidu finance minister P Thiaga Rajan said that this move to raise should be stalled. Confederation of All India Traders said that this raise would financially affect MSMEs. 

The Union budget is scheduled to be presented on February 1, 2022.

Updated Date: 26-01-2022

GST on clothing, textiles, and footwear increased from 5% to 12% beginning in January

The government has raised the goods and services tax on completed items such as clothes, textiles, and footwear from 5% to 12%, beginning January 2022. The GST rate on textiles has been raised to 12% from 5% beginning in January 2022. In addition, the GST rate on garments of any value has been raised to 12% from 5%. Before, the articles valued up to Rs. 1,000 were subject to 5% GST. 

“CMAI, along with associations and trade bodies from all over India, have been vigorously representing to the government and GST Council not to implement this change, and it is indeed extremely disappointing that the Council has chosen not to heed their plea,” said Rajesh Masand, president of CMAI, in a statement. “Even without a rise in the GST rate, the market was expecting a 15-20 percent increase in garment costs in the next season.” 

To tackle an issue that exists in 15% of the business, this measure will negatively influence 85 percent of the overall industry, Masand explained.

Updated Date: 08-12-2021

Reduction in GST Tax on Indian Biodiesel Blending

With the aim to incentivize biofuel production, India’s GST regimen has reduced taxes on Oil Marketing companies, with diesel blending taxes deceased to 5 pc from 12 pc. This status quo-altering decision will offer strong momentum to the biodiesel industry and will result in a smoother transition. Industry captains are reacting to the news with caution, as many are remaining skeptical whether this policy move will have any ramifications on the overall economics of biodiesel purification.

Low feedstock availability is the main impediment to increased biodiesel blending. The diesel blending rate exists at 0.1 pc which is expected to climb up to 5 pc by 2030. Fuel production economics will be positively influenced by the decrease in ethanol blending indicating an increase in gasoline consumption. Gasoline demand has seen a definitive upward thrust as the pandemic settles down which has complementary profitable consequences on global crude prices and a reduction in global taxation.

Updated Date: 28-09-2021

GST Exempt For Hotels With Price Less Than ₹1,000/- Per Day

The vendors have received some relief from the confusion related to the exemption from GST.

The Authority for Advance Ruling (AAR) recently concluded that a hostel that charges a residential fee of less ₹1,000/- per day will be exempt from the application of Goods and Services Tax. The session was concluded by the Maharashtra Bench. It added that the return filing would appear as ‘nil’ under the 14th Entry.

The case came to light when Ghodawat Eduserve sought an explanation from the authorities about the implementation of GST. The Kolkata-based education service provider charges an additional fee to offer residential accommodation to students of 11th and 12th standards. It had set a fee of ₹94/- per day and implementation of GST would have unnecessarily increased the price. The exemption was confirmed by the Central Board of Indirect Taxes and Customs (CBIC) in its notification dated February 12, 2018.

Updated Date: 14-09-2021