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GST Rates in 2020 – Complete List of Goods and Service Tax Rates, Slab & Revision

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GST Rates

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

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 the 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 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 earlier GST rate 18% now have reduced GST of 12%.

  • GST on infrastructure/fuel/environment items

Items in this category with earlier GST of 28% now have 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 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:

Goods/Services Category

Earlier GST rates (%)

New GST rates (%)

Food and Beverages

12

5

18

12

28

18

Household goods of daily use

18

5, 12

28

0,5, 18

Educational items

28

12

12

0, 5

Medical and health

12

0,5

Agriculture

12

5

18

12

Infrastructure, fuel, environment

28

18

18

12

Safety and security

18

18

Miscellaneous

28

18

18

0,5,12

Services

0

0

5

5

12

12

18

18

28

28

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GST Rates FAQs:

1. Can GST returns be filed online?

GST can be filed online just like ITR. For filing GST online entity will have to register on the official GST portal. After successful registration, the registered member can sign in to access their own GST page through personal id and password.

2. How to file GST returns online?

After registering on GST official portal, GST returns can be filed within due dates. The portal provides information regarding several forms used for GST filing. Member has to choose form applicable for own case and enter the relevant details in the form. GST filing trader can use trade account details to fill in the GST form information and also upload required documents.

3. Can there be a GST refund on GST filing like ITR refund?

If excess tax has been paid than applicable, then GST authorities may make a refund of the extra balance amount paid by the entity. However, the entity should apply the correct computation method and GST tax slab rates to get an exact total GST amount payable. The entity would need to fill in GST deducted from the entity as well as GST deducted by the entity. In the supply chain of any product/service, there can be several suppliers from the raw material to finished product/service stage. Hence an entity in any supply chain pays GST to suppliers and charges GST from customers.

4. What if wrong GST rate is applied?

Sometimes trader may use older software with earlier GST rates, and there can be errors in calculation due to change in GST rates. However, during the online filing of GST, the form has updated rates mentioned. Wrong rates applied can lead to greater tax payment as GST rates have reduced significantly for most goods. GST form filing is more frequent than ITR, and some forms have to be filed monthly. It’s best to get to know the exact applicable rates at earliest and correct the same in software.


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