GST rate structure

India moved a step closer towards implementing the goods and services tax (GST) after the center and the states struck a consensus on the GST rate and it’s structure of the ambitious tax reform.

GST council rates sets at 5%, 12%, 18%, 28%. Plus some component of cess at 1%, 3%, 15% on some commodities falling under 28% rate.

We shall be sharing series of lists for different sectors. Here is the list for 31 products of Edible, Dairy Products & few FMCG sector products as under:

GST rate structure finalized on 1205 items,majority of items in 12% and 18% tax slabs
S.No.
Particulars
Rates
5%
12%
18%
28%
FMCG :
1
Dairy produce; bird’s eggs; natural honey; edible products of animal origin.
Skimmed milk powder,Natural Honey put up in a unit container and bearing a brand name , Cream, Yoghurt.
Butter and other fats (ghee, butter oil, etc.) Cheese.
Condensed milk
2
Edible vegetables, roots and tubers
Frozen or dried,Vegetables provisionally preserved  but unsuitable in that state for immediate consumption.
3
Edible fruit and nuts; peel of citrus fruit or melons
 All goods, other than dry fruits, in frozen state or preserved.
Dry fruits (cashew nuts, almonds,pistachios, Dates ,Raisins)
4
Coffee, tea, mate and spices
Coffee (roasted,decaffeinated) Tea (processed green leaves of tea) Mate,vanilla,Cinnamon and cinnamon-tree flowers, cloves, Ginger(other than fresh ginger).
5
Products of milling industry; malt; starches; wheat gluten
Cereal groats, meal and pellets, put up in unit container and bearing a registered brand name.
6
Oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder
All goods other than of seed quality
7
Lac; gums, resins and other vegetable saps and extracts
Natural gums, resins,heeng,Guar meal or guar gum refined split.
All goods not specified elsewhere,other than
Guar meal or guar
gum refined split.
8
Vegetable plaiting materials; vegetable products, not elsewhere specified or included
All goods not specified elsewhere, Vegetable materials of a kind used primarily for plaiting .
Indian katha
9
Animal and vegetable fats and oils and their cleavage products;prepared edible fats; animal or vegetable waxes
Soya bean  oil,Ground nut oil ,Olive oil,Palm oil,Sunflower seed oil,Coconut oil,mustard oil,whether or not refined, but not chemically modified
Animal fats and oils: Pig fat, Poultry fat,Fat and oil of fish whether or not refined but not chemically modified.
Vegetable waxes residues of fatty substances or animal or vegetable waxes .
10
Preparations of meat, of fish or of crustaceans, mollusks or other aquatic vertebrates
All Goods Sausages, juices, preparation or preservation of meat,Fish.
11
Sugar and sugar confectionery
Beet sugar, cane sugar, khandsari sugar,Palmyra sugar
Refined sugar containing added flavoring or coloring matter,sugar cubes ,lactose,maple syrup,glucose, dextrose,fructose, invert sugar, artificial honey,Sugar confectionery (excluding white chocolate and bubble/ chewing gum).
Molasses, Chewing gum bubble gum and white chocolate, not
containing cocoa .
12
Cocoa and cocoa preparations
Co coca beans,shells,paste
Cocoa butter, fat and oil,  Cocoa powder (not containing added sugar or sweetening matter)and Chocolates and other food preparations containing cocoa.
13
Preparations of cereals, flour, starch or milk; pastry cooks’ products
Mixes and dough’s for the preparation of bread, pastry and other baker’s wares, Pizza bread.
Preparations for infant use, Pasta,Corn Flakes.
1.Food preparation of floor containing less than 40% of cocoa.    2.Wafers Coated with Chocolate or containing chocolate
14
Preparations of vegetables, fruits, nuts or other parts of plants (pickle, jam )
Fruit juices, vegetable juices.
Jams, fruit jellies, fruit or nut purée and fruit or nut paste
15
Miscellaneous edible preparations
Sweetmeats
Roasted chicory, Coffee
Extracts, essences and concentrates of tea,Sauces,Soups ,Ice cream
Instant coffee, coffee aroma,Pan Masala
16
Beverages
Fruit pulp or fruit juice based drinks Beverages containing milk
Ethyl alcohol,Vinegar
1.Other non-alcoholic beverages     2. Aerated waters, containing added sugar or other sweetening matter or flavoured.
17
Residues and waste from the food industries; prepared animal fodder
Flours,meals,residue of starch manufacturer.
18
Tobacco and manufactured tobacco substitutes
Tobacco leaves (under reverse charge)
All goods not specified elsewhere, other than biris.
19
Essential oils and resinoids perfumery, cosmetic or toilet preparations.
Tooth powder, Agar batti and other odoriferous preparations which operate by burning.
Essential oils (Hair oil, Dentifrices -Toothpaste)
All goods not specified elsewhere:
Perfumes and toilet waters,Beauty or makeup preparations and preparations for the care of the skin (other than medicament),including sunscreen,Shampoos,Hair Cream,Dental Floss (like Listerine)Shaving cream, Personal deodorants and antiperspirants.
20
Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster.
Sulphonated castor oil, fish oil or sperm oil
Candles, tapers and the like
Soap,Artificial waxes and prepared waxes.
In the form of liquid or cream, Artificial waxes and prepared waxes. Polishes and creams, for footwear, furniture, floors,coachwork, glass or metal,dental wax.
21
Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations.
Handmade safety matches.
Propellant powders,Safety fuses,Matches .
Prepared explosives,Fireworks, Signalling flares,refilling cigarette or similar lighters.
22
Plastics and articles thereof.
Feeding bottles.
Primary polymers,Waste, parings and scrap, of plastics ,all goods including canes of plastics ,Tubes, pipes and hoses, and fittings therefor, of plastics ,Self-adhesive plates,sheets, film, foil, etc.of plastics,Other plates, sheets, film foil, etc. of plastics,Tableware, kitchenware, other household articles and Hygiene or toilet articles, of plastics,PVC Belt Conveyor .
Floor coverings of plastics,Baths, shower baths,sinks, wash basins, bidets.
23
Rubber and articles thereof.
Toy balloons made of natural rubber latex,bicycles,cycle -rickshaws and three wheeled powered cycle rickshaws.
Latex Rubber Thread,Surgical rubber gloves or medical examination rubber gloves ,Nipples of feeding bottles .
Synthetic rubber and factice derived fromoils,Reclaimedrubber,Waste,parings and scrap of rubber,Compounded rubber,Tubes,pipes and hoses of vulcanised rubber,Hot water bottles,Ice bags,Articles of apparel and clothing accessories,                       Erasers
New pneumatic tyres, of rubber used in motor cars, buses or lorries, aircraft, motor cycles etc,Floor coverings and mats,rubber boats or dock fenders, air mattress.
24
Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding crops and parts thereof
Umbrellas and sun umbrellas,Walking sticks.
25
Glass and glassware
Globes for lamps and lanterns, Founts for kerosene wick lamps, Glass chimneys for lamps and lanterns
Spectacles, other waste and scrap of glass,Carboys,bottles, flasks, jars, pots.
26
Articles of iron or steel
Pencil sharpeners,Utensils,Kerosene burners, kerosene stoves and wood burning stoves of iron or steel.
27
Aluminium and articles thereof
Utensils, Table or kitchen or other household articles of aluminium.
Aluminium waste and scrap,Aluminium powders and flakes,Aluminium bars, rods and profiles.Aluminium wire. Aluminium plates, sheets and strip, of a thickness exceeding 0.2 mm. Aluminium tubes and pipes, Aluminium tube or pipe fittings.
Doors, windows and their frames and thresholds for doors,. All goods other than utensils i.e. sanitary ware and parts thereof.
28
Tools, implements, cutlery, spoons and forks of base metal; parts thereof of base meta
Pencil sharpeners and blades thereof,Knives with cutting blades,Paper knives.
Razors and razor blades,Other articles of cutlery .
29
Clocks and watches and parts thereof
Braille watches
Clocks with watch movements,Other clocks.
Wristwatches, pocket watches and other watches, including stop-watches.
30
Musical instruments; parts and accessories of such articles
Automatic pianos; harpsi-chords and other keyboard stringed instruments Other string musical instruments (for example, guitars).
31
Toys, games and sports requisites; parts and accessories thereof
Sports goods other than articles and equipment’s for general physical exercise. Toys like tricycles, scooters, pedal cars etc.
Electronic Toys like tricycles, scooters, pedal cars etc
Video games consoles and Machines Festive, carnival or other entertainment articles, including,conjuring tricks and novelty jokes.

Therefore with the help of this article we have tried bringing to you an analysis of how GST rate has impacted those who deal in items as under

  • Edible products,
  • Dairy products
  • & FMCG products

& accordingly one can evaluate his/her position as a result of this change.

Read our Analysis of GST impact on Textile industry

References:

http://GST rates for products & services

GST Rates for General Products

 

 

Much Awaited part of GST is released: It's now time for business to evaluate their business according to these GST tax rate

Much Awaited part of GST is released: GST tax rate for Goods & Services are announced

From list of 1211 items, GST tax rate for 1205 goods is released & it looks that it’s time for the businesses to evaluate their cut over planning and formulate their pricing strategies in view of the transition to GST.

Overall the announcement has been positive & looks well thought of, by putting commonly used products under 5, 12 or 18% slab which in existing scenario was up to 22-24%. For ex: Products like Hair oil, toothpaste, soaps were charged at 22-24% rate which has been reduced to 18%.

We have tried to share as under 2 areas of key importance regarding GST tax rate for goods & services :

A ) What is in the list of item wise tax rates for us?

  1.  Milk and curd will continue to be exempt from taxation in GST too.
  2.  Mithai or sweets will attract 5 per cent levy.
  3.  Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 per cent, almost the same as current incidence.
  4. Prices of wheat and rice, will come down as they will be exempt from GST if not packed in container & not branded too.
  5. Aerated drinks like Coke, Pepsi, 7 up, Mazza etc.and cars will be in the 28 per cent bracket.
  6. All the category of cars whether small, mid size or large will attract common rate of 28% but cess will vary in each category. Small size will have 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.
  7. Aerated drink will have cess of 12% over & tax rate of 28%.
  8. White goods like ACs and refrigerators will fall in the 28 per cent tax slab.
  9. Motor Cycles with > 350 cc  engine shall also pay cess of 3 % over the tax rate of 28%.
  10. Life-saving drugs have been kept at 5 per cent rate.

In the overall basket, it looks that item wise tax rate has been reduced in GST for majority of items.

The list of exemptions in GST has been substantially trimmed as compared to the existing regime, with only 7% of total items indicated to be kept nil-rated.

This will broaden the tax base & also some new sectors have been introduced to tax compliance.

B) Which Goods are exempt under GST?

  1. Live Animals other than live horses.
  2. Meat and edible meat offal, except the one’s frozen & kept in unit container.
  3. Fish, crustaceans, molluscs & other aquatic invertebrates. These are all Aquatic species.
  4. Dairy produce excluding flavored milk ; bird’s eggs; natural honey; edible products of animal origin, not elsewhere specified
  5.  Products of animal origin, not elsewhere specified or included
  6. Live trees and other plants
  7. Fresh Edible vegetables, roots and tuber, except the frozen & container ones.
  8. Fresh Edible fruit and nuts; peel of citrus fruit or melons, except the frozen & container ones.
  9. Coffee, tea & spices of seed quality , not roasted & processed
  10. Cereals, other than the ones contained in a container & bearing a registered trade name
  11. Products of milling industry; malt; starches; inulin; wheat gluten,  other than the ones contained in a container & bearing a registered trade name.
  12. Vegetable plaiting materials like betel leaves; vegetable products, not elsewhere specified or included
  13. Sugar and sugar confectionery, gur (jaggery)
  14. Preparations of cereals, flour, starch or milk; pastry cooks’ products
  15. Miscellaneous edible preparations, like prasadam supplied by religious places
  16. Beverages, spirit and vinegar, other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized water sold in sealed container, alcohol.
  17. Residues and waste from the food industries; prepared animal fodder.
  18. Salt; sulphur; earths and stone; plastering materials, lime and cement.
  19. Pharmaceutical products i.e. human blood & it’s component , All type of contraceptives.
  20. Fertilisers: Organic manure, other than put up in unit containers and bearing a brand name.
  21. Essential oils and resinoids like kumkum, bindi, alta.
  22. Miscellaneous chemical products: Municipal waste, sewage sludge, clinical waste.
  23. Plastics and articles thereof
  24. Rubber and articles thereof
  25. Fire Wood and articles of wood, wood charcoal used for fuel.
  26. Paper and paperboard; articles of paper pulp, of paper or of paperboard: Judicial, Nonjudicial stamp papers, Court fee stamps when sold by the Government Treasuries or Vendors authorized by the Government, Postal items, like envelope, Post card etc., sold by Government
  27. Printed books, newspapers, pictures and other products of the printing industry, manuscripts, typescripts and plans.
  28. Ceramic products: Earthen pot & clay lamps
  29. Glass and glassware: Bangles (except those made from precious metals)
  30. Tools, implements, cutlery, spoons and forks of base metal; parts thereof of base metal: Agricultural implements manually operated or animal driven.
  31. Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof: Hand loom
  32. Aircraft; spacecraft and parts thereof: Spacecraft (including satellites) and suborbital and spacecraft launch vehicles
  33. Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof: Hearing aids
  34. Musical instruments; parts and accessories of such articles: Indigenous handmade musical instruments
  35. Project imports, laboratory chemicals, passengers’ baggage, personal importation, ship stores: Passenger baggage.

Conclusion:

Therefore this is essential for the businesses, so they can evaluate. Accordingly undertake cut over planning and formulate their pricing strategies in view of the transition to GST.

Recommended References:

Item wise rates under 98 categories

GST Service wise tax rates

Services where only Service Recipient will pay tax

Tax rates for Dairy, Consumables & FMCG Products

Written By

Bhawana Joshi

Chartered Accountant, GST Consultant

About us: I am the co-founder of GST Insights. Our consultancy & solutions are focused on GST, based on industry requirements. To know more refer http://www.gst-insights.com