Goods and Services Tax (GST 2017) is an indirect tax in India which consists of most of the existing taxes into a single system of taxation. It will bind the country together as GST is One Nation One Tax.
Goods and Services Tax (GST 2017) Taxes will play a major role in the field of Indirect Tax Reforms in India. By combining a large number of central and state taxes into a single tax, it would reduce the double taxation in a significant way. GST can reduce your overall tax burden on goods and services.
Due to GST 2017, Indian products will become competitive in the domestic and international markets. It will boost the economy to grow and because of its transparent and self-policing character, it would also be easier to administer. Currently, there would be four tax rates namely 5%, 12%, 18% and 28%.
GST Council revises rates for 66 items, Updated on 11th June
GST Council revisits rate for 66 items and threshold limit for composition scheme. Kindly go through some of the mentioned goods and their revised rates:
| Goods | Existing Rates | New Rates |
| Vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly, ketchup & sauces [other than curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasonings], Mustard sauces | 18% | 12% |
| Children’s’ picture, drawing or coloring books, Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470: 2002 | 12% | 0 |
| Cashew Nut, Raisin, Ice and Snow, Bio Gas, Insulin, Agarbatti, Coir mats, matting and floor covering, Postage or revenue stamps, stamp-post marks, first-day covers, Numismatic coins etc | 12% | 5% |
| Cereal grains hulled, Salt, all types | 5% | 0 |
| Dental wax, Plastic Tarpaulin, Computer printers, Electrical transformer, recorder, CCTV, Scholl Bags , Headgear and parts thereof, Precast Concrete Pipes, Salt Glazed Stone Ware Pipes , Aluminium foil ,All goods, including hooks and eyes , Rear Tractor tyres and rear tractor tyre tubes , Movie Tickets (Cost less then Rs.100) | 28% | 18% |
| All diagnostic kits and reagents Exercise books and notebooks, Glasses for corrective spectacles and Flin buttons, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Intraocular lens, Spectacles, corrective | 18% | 12% |
| Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines], Two-way radio (Walkie-talkie) used by defense, police, and paramilitary forces etc. | 28% | 12% |
| Pawan Chakki that is Air Based Atta Chakk | 28% | 5% |
| Human hair, dressed, thinned, bleached or otherwise worked |
28% | 0 |
Full Tax Rate List Of GST 2017, Updated on 19th May
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No Tax
| Goods | Services |
| No tax will be imposed on items like meat, fish chicken, eggs, milk, buttermilk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, Prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc. | Hotels and lodges services with tariff below Rs 1,000, exempted from GST.
|
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5% Tax
| Goods | Services |
| Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, Sabu dana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 % | Transport services (Railways, air transport), small restaurants will be under the 5% category because their main input is petroleum, which is outside GST ambit. |
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12% Tax
| Goods | Services |
| Frozen meat products, butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, Namkeen, Ayurvedic medicines, tooth powder, Agarbatti, coloring books, picture books, umbrella, sewing machine, cell phones will be under 12 % tax slab. | Non-AC hotels, business class air ticket, fertilizers, Work Contracts will fall under 12 percent GST tax slab. |
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18% Tax
| Goods | Services |
| Most items are under this tax slab which includes flavored refined sugar, pasta, cornflakes, pastries, and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, notebooks, steel products, printed circuits, camera, speakers and monitors. | AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 percent tax under GST. |
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28% Tax
| Goods | Services |
| Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, aftershave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, will attract 28 % tax – the highest under GST system. | 5-star hotels, race club betting, the cinema will attract tax 28 percent tax slab under GST. |
Current Central Taxes To Be Included in GST 2017
- Central Excise Duty
- Duties of Excise (Medicinal and Toilet Preparations)
- Additional Duties of Excise – Goods of Special Importance, Textiles and Textiles Products
- CVD – Additional Duties of Customs
- Special Additional Duty of Customs(SAD)
- Service Tax
- Cesses and surcharges insofar as they relate to supply of goods or services
Current State Taxes To Be Included in GST 2017
- State VAT
- Central Sales Tax
- purchase tax
- LuxuryTax
- Entry Tax (All forms)
- Entertainment Tax (except those levied by the local bodies)
- Taxes on advertisements
- Taxes on lotteries, betting, and gambling
- State cesses and surcharges insofar as they relate to supply of goods or services
Benefits of GST 2017 – Goods And Service Tax
GST will help India to create a common national market and boost the economy by attracting foreign investment. It will ease harmonization of laws, procedures, and rates of taxes and encourage export and manufacturing activity. It also generates employment which helps poverty eradication.
Goods and Service Tax make your products more competitive in the international markets leading to economic growth as well. Furthermore, you can expect the prices of products to come down due to less tax burden on companies. Finally, more consumption leads to more production helping in the growth of the industries.
In Addition, GST will help you to do business in India very easier as compliance costs will reduce. It also simplified and automated the procedures for your firm registration, returns, refunds and tax payments. You can interact through the common online GSTN portal which will be the interface between the taxpayer and the tax administration.
It will also make the process more transparent and accountable by electronic matching of input tax credits across India. You will get the final goods and services at a lower price. Even you will get uniform prices of goods and services throughout the country.
Step by Step Guide for GST 2017 Enrolment for existing Central Excise / Service Tax Assessees
If you are an existing Central Excise and Service Tax assessees then you will be able to migrate to GST.
To migrate to GST, assessees would be provided with a Provisional ID and Password by CBEC – Central Board of Excise and Customs.
You will get Provisional IDs only if you have a valid PAN associated with your registration.
You may not be provided with a Provisional ID in the following cases:
1. The PAN associated with the registration is not valid
2. The PAN is registered with State Tax authority and Provisional ID has been supplied by the said State Tax authority.
3. There are multiple CE/ST registrations on the same PAN in a State. In this case, only 1 Provisional ID would be issued for the 1st registration in the alphabetical order provided any of the above 2 conditions are not met.
You need to use the Provisional ID and Password to login to the GST Common Portal where you would be required to fill and submit the Form 20 along with necessary supporting documents.
If you are a new Taxpayer then Read: Step By Step GST Enrollment Guide For New Tax Payer
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Last updated: Mar 21, 2018