Do you know what will be GST rate for products/ services you sell? No worries. We have given here GST rate chart covering most of the goods, services with HSN and SAC code.
Following points are covered in this article:
- What is GST in India?
- GST rate for goods and services with HSN code
- what is composition scheme and GST rate under the scheme?
- Reverse charge under gst and GST rate under the same
- GST Compensation Cess Rate
- How to charge CGST, IGST, SGST while issuing invoices?
- GST benefits
- GST credits
What is Good Service Tax (GST)?:
GST is proposed to be a comprehensive indirect tax to be levied on manufacture, sale and consumption of goods as well as services at the national level. It will substitute all indirect taxes levied on goods and services by the Central and State Governments in India as of now.
GST Rate chart applicable from 1St July, 2017 in India:
Please find below the rates of GST for few goods and services.
| GOODS | ||
| Chapter / Heading / Sub- heading / Tariff item | Description of goods | GST Rate approved by the GST Council |
| 01012100, 010129 |
Live horses | 12% |
| 0101 to 0106 | All live animal other than live horses |
0% |
| 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209 | All goods in frozen state and put up in unit containers | 12% |
| 0303, 0304, 0305, 0306, 0307, 0308 | All goods (other than fish seeds, prawn / shrimp seed) processed, cured or in frozen state | 5% |
| 04029110, 04029920 | Condensed milk | 18% |
| 0405, 0406 | Butter and other fats (ghee, butter oil, etc.) and oils derived from milk; dairy spreads and cheese |
12% |
| 0401, 0402, 0403, 0404, 0409, 0410 | Cream, yogurt,skimmed milk powder, milk food for babies, Chena or paneer, Natural honey. | 5% |
| 0506, 0507 90 |
Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, etc. | 0% |
| 0801 | Cashew nut | 5% |
| 0801, 0802, 0804, 0413 | Brazil nuts and Other nuts, dried, whether or not shelled or peeled, such as Almonds, Hazelnuts or filberts (Coryius spp.), walnuts, Chestnuts (Castanea spp.), Pistachios, Macadamia nuts, Kola nuts (Cola spp.), other than areca nuts. |
12% |
| 0806 | Raisin | 5% |
| 0901, 0902, 0903, 0904, 0906, 0907, 0908, 0910 | Coffee, Tea, Vanilla. Cinnamon and cinnamon-tree flowers, Cloves, Nutmeg, mace and cardamoms, Ginger other than fresh ginger, saffron, turmeric (curcuma) other than fresh turmeric, thyme, bay leaves, curry and other spices. |
|
| 1104 | Cereal grains hulled | 0% |
| 1702 | Palmyra jaggery | 0% |
| 1801, 1802, 1803, | Cocoa beans | 5% |
| 1804, 1805, 1806 | Cocoa butter, fat and oil, cocoa powder, not containing added sugar or sweetening matter and Chocolates and other food preparations containing cocoa | 28% |
| 1901, 1902, 1903, 1905 | bread, pastry and other baker’s wares, Rusks, toasted bread and similar toasted products | 5% |
| 1901, 1902, 1903, 1905 32, 1905 9010 | Corn flakes,Pasta, Waffles and wafers, Pastries and cakes | 18% |
| 20 [All goods] |
Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly | 12% |
| 2103, 2103 00, 2103 90 90 |
Ketchup & Sauces [other than curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings], Mustard sauces | 12% |
| 2103 90 10, 2103 90 30, 2103 90 40 |
Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings | 18% |
| 2106 | Bari made of pulses including mungodi | 12% |
| 2105, 2106 | Ice cream , All kinds of food mixes including instant food mixes, soft drink concentrates, Sharbat, Betel nut | 18% |
| 2201 90 10 | Ice and snow | 5% |
| 2501 | Salt, all types | 0% |
| 2601 to 2617 | All ores and concentrates | 5% |
| 27 | Bio gas and (LPG) for supply to household domestic consumers | 5% |
| 28 | Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470 : 2002 | 0% |
| 30 | Insulin | 5% |
| 29, 30, 3302 | (i) Menthol and menthol crystals, (ii) Peppermint (Mentha Oil), (iii) Fractionated / de-terpenatedmentha oil (DTMO), (iv) De-mentholised oil (DMO), (v) Spearmint oil, (vi) Menthapiperita oil |
12% |
| 3605 00 10 | Handmade safety matches | 5% |
| 3304 20 00 | Kajal [other than kajal pencil sticks] | Nil |
| 3304 20 00 | Kajal pencil sticks | 18% |
| 3307 | Agarbatti | 5% |
| 3407 | Dental wax | 18% |
| 3822 | All diagnostic kits and reagents | 12% |
| Feeding bottles. | 12% | |
| 3901 to 3923 | Primary polymers, waste, parings and scrap, of plastics, Tubes, pipes and hoses, and fittings of plastics, Self-adhesive plates, sheets, film, foil, etc. of plastics, Articles for conveyance or packing of goods, etc.of plastics |
12% |
| 3901 to 3914, 3918, 3922, 3926 90 10 | Floor coverings of plastics, Baths, shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics, Other articles of plastics and articles of other materials of headings,Conveyor |
28% |
| 3926 | Plastic beads | 12% |
| 3926 90 99 | Plastic Tarpaulin | 18% |
| 4202 | (i) School satchels and bags other than of leather or composition leather; (ii) Toilet cases [4202 12 10]; (iii) Hand bags and shopping bags of artificial plastic material [4202 22 10], of cotton [4202 22 20], of jute [4202 22 30], vanity bags [4202 22 40]; (iv) Handbags of other materials excluding wicker work or basket work [4202 29 10]. |
18% |
| 47 | Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard | 18% |
| 4801 | Newsprint, in rolls or sheets | 5% |
| 4802, 4804, 4805, 4806 20 00, 4806 40 10, 4807, 4808, 4810, 4817 | Uncoated paper and paperboard, uncoated kraft paper, greaseproof paper, glassine paper, composite paper etc | 12% |
| 4803, 4806, 4811, 4817 | Toilet or facial tissue stock, towel or napkin stock and similar paper, Vegetable parchment, tracing papers , Paper, paperboard, cellulose wadding, Envelopes, letter cards, plain postcards, Toilet paper and similar paper |
18% |
| 4814 | Wall paper and similar wall coverings | 28% |
| 4901 | Brochures, leaflets and similar printed matte | 5% |
| 4909, 4910 | Printed or illustrated postcards, Calendars | 12% |
| 4820, 4903,4906 | Exercise books and note books, Children’s picture, drawing or colouring books. Music, printed or in manuscript, whether or not bound or illustrated, Plans and drawings for architectural, engineering, industrial, commercial, topographical |
12% |
| 4823 | Kites | 5% |
| 4903 | Children’s’ picture, drawing or colouring books | Nil |
| 57 | Coir mats, matting and floor covering | 5% |
| 65 [All goods] |
Headgear and parts thereof | 18% |
| 66 (All goods) | Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, ridingcrops and parts thereof | 12% |
| 6703 | Human hair, dressed, thinned, bleached or otherwise worked | 0% |
| 68 | Fly ash blocks | 12% |
| 6810 11 90 | Pre cast Concrete Pipes | 18% |
| 6906 | Salt Glazed Stone Ware Pipes | 18% |
| 7015 10 | Glasses for corrective spectacles and flint buttons | 12% |
| 71 | Rough precious and semi-precious stones | 0.25% |
| 72 ( all goods) | Iron and steel | 18% |
| 75 (All Goods) |
Nickel and articles thereof | 18% |
| 7607 | Aluminium foil | 18% |
| 78 (All Goods) |
Lead and articles thereof | 18% |
| 79 (All Goods) |
Zinc and articles thereof | 18% |
| 8215 | Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs | 12% |
| 85 | Renewable energy devices & spare parts for their manufacture a) Bio-gas plant b) Solar power based devices c) Solar power generating system d) Wind mills and wind operated electricity generator e) Waste to energy plants/devices f) Solar lantern/solar lamp g) ocean waves/tidal waves energy devices/plants |
5% |
| 8517 | Telephones for cellular networks or for other wireless networks | 12% |
| 8308 | All goods, including hooks and eyes | 18% |
| 84 | PawanChakki that is Air Based Atta Chakki | 5% |
| 84 | Fixed Speed Diesel Engines | 12% |
| 4011 | Rear Tractor tyres and rear tractor tyre tubes | 18% |
| 8708 | Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle | 18% |
| 8423 & 9016 |
Weighing Machinery [other than electric or electronic weighing machinery] | 18% |
| 8443 | Printers [other than multifunction printers] | 18% |
| 8482 | Ball bearing, Roller Bearings, Parts & related accessories | 18% |
| 8504 | Transformers Industrial Electronics | 18% |
| 8504 | Electrical Transformer | 18% |
| 8504 | Static Convertors (UPS) | 18% |
| 8521 | Recorder | 18% |
| 8525 | CCTV | 18% |
| 8525 60 | Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc. | 12% |
| 8528 | Set top Box for TV | 18% |
| 8528 | Computer monitors not exceeding 17 inches | 18% |
| 8539 | Electrical Filaments or discharge lamps | 18% |
| 8544 | Winding Wires | 18% |
| 8544 | Coaxial cables | 18% |
| 8544 70 | Optical Fiber | 18% |
| 8472 | Perforating or stapling machines (staplers), pencil sharpening machines | 18% |
| 8715 | Baby carriages | 18% |
| 9002 | Intraocular lens | 12% |
| 9001 | Spectacles, contact lens | 12% |
| 9022 | Apparatus based on the use of X-rays or of alpha, beta or gamma radiations, for medical, surgical, dental or veterinary uses | 12% |
| 9017 | Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers) | 18% |
| 9403 | Bamboo furniture | 18% |
| 9504 | Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines] | 12% |
| 9506 | Swimming pools and padding pools | 18% |
| 9603 10 00 | Muddhas made of sarkanda and phoolbaharijhadoo | 0% |
| 9704 | Postage or revenue stamps, stamp-post marks, first-day covers, etc. | 5% |
| 9705 | Numismatic coins | 5% |
| 4823 90 11, 8472, 9101, 9102, 9021 |
Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability [These goods are covered in List 32 appended to notification No.12/2012-Customs, dated 17.03.2012 and are already at 5% GST rate (Chapter 90)] |
5% |
| SERVICES | ||
| Services Accounting Tariff Code (SAC) | Description of services | GST Rate approved by the GST Council |
| Group 99641 | Transport of goods by rail | 5% |
| Group 99641 | Transport of passengers by rail (other than sleeper class) | 5% |
| Group 99679 | Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use] | 5% |
| Group 99679 | Services of goods transport agency in relation to transportation of used household goods for personal use. | 5% |
| Group 99652 | Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India | 5% |
| Group 99660 | Renting of motorcab | 5% |
| (If fuel cost is borne by the service recipient, then 18% GST will apply) | ||
| Group 99660 | Transport of passengers, by- | 5% |
| (i) Air conditioned contract/stage carriage other than motorcab; | ||
| (ii) a radio taxi. | ||
| Group 9982 | Legal and accounting services | 18% |
| 996603 | Transport of passengers by air in economy class | 5% |
| Group 99676 | Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. | 5% |
| Group 99855 | Supply of tour operators’ services | 5% |
| 998382 | Selling of space for advertisement in print media | 5% |
| 998441 | Services by way of job work in relation to printing of newspapers; | 5% |
| Group 99642 | Transport of goods in containers by rail by any person other than Indian Railways | 12% |
| 996603 | Transport of passengers by air in other than economy class | 12% |
| 996331 | Supply of Food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having license to serve liquor. | 12% |
| 996332 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day | 12% |
| Heading No.9954 | Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. | 12% |
| [The value of land is included in the amount charged from the service recipient] | but no refund of overflow of ITC | |
| Heading No. 9963 | Supply of Food/drinks in restaurant having license to serve liquor | 18% |
| Heading No. 9963 | Supply of Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year | 18% |
| Heading No. 9963 | Supply of Food/drinks in outdoor catering | 18% |
| 996311 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs.2500/ and above but less than Rs.5000/- per room per day | 18% |
| Group 99963 | Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama | 18% |
| Composite supply of Works contract as defined in clause 119 of section 2 of CGST Act | 18% | |
| 999791 | Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as IPL and the like; | 28% |
| Services provided by a race club by way of totalisator or a licensed bookmaker in such club; | 28% | |
| 999692 | Gambling; | 28% |
| Heading No. 9963 | Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel | 28% |
| Heading No. 9963 | Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 5000/- and above per night per room | 28% |
| All Other services not specified | 18% | |
GST composition scheme and rate under scheme:
Composition scheme is scheme introduced for the small business owner to make compliance easy. Every taxpayer whose aggregate turnover does not exceed Rs.50 lakh threshold in a Financial Year can apply for GST composite scheme.
Prominent features of the composite scheme:
- The respective tax payer is liable to file only quarterly return instead of monthly 3-4 returns as required under normal GST scheme.
- The GST rates are lower than the normal GST tax-payer. The current proposed rates under GST are: 1% for manufacturers, 2.5% for restaurant service providers, 0.5% for other suppliers of turnover.
- Any taxpayer registered under this scheme will not be eligible to take credit of Input GST Tax paid on purchase of goods and services.
- The taxpayer registered under this scheme will not be eligible for dealing in inter-state or import & export of goods and services.
GST rate under reverse charge:
Reverse charge scheme merely means, the scheme where recipient is liable to pay tax instead of the provider. The rates applied on each transaction are same as the rates under normal GST transactions.
The government has proposed the below situations under which reverse charge can be applied:
- Unregistered dealer selling to a registered dealer
- Non-resident service provider
- Goods Transport Agencies
- Legal service by an Advocate/ Firm of Advocates
- Arbitral Tribunal
- Sponsorship Services
- Specified Services provided by Government or Local Authority to Business entity
- Services of a director to a company
- Insurance agent
- Recovery Agent of Bank/FI/ NBFC
- Transportation Services on Import
- Permitting use of Copyright
- Radio Taxi services to E-commerce aggregator (eg: Ola, Uber, etc.)
GST compensation cess rate:
Introduction of GST, for some states may result in losses. So in order to compensate states from this kind of probable loss, GST council has introduced “GST compensation cess” on selected goods for a period of first 5 years from GST introduction. Thusin addition to 4 rate slabsdecided (i.e. 5%, 12%, 18%, and 28%), there will be a new cess with the name “GST Compensation Cess” levied on specified items for first 5 years.
The list of items and rates are as below:
| Description of supply | Tariff item, heading, sub- heading, Chapter, of goods or service, as the case may be |
Rate for GST Compensation Cess |
| Pan Masala | 2106 90 20 | 60% |
| Aerated waters | 2202 10 10 | 12% |
| Lemonade | 2202 10 20 | 12% |
| Others | 2202 10 90 | 12% |
| Unmanufactured tobacco (without lime tube) – bearing a brand name |
2401 | 71% |
| Unmanufactured tobacco (with lime tube) – bearing a brand name |
2401 | 65% |
| Tobacco refuse, bearing a brand name | 2401 30 00 | 61% |
| Chewing tobacco (without lime tube) | 2403 99 10 | 160% |
| Chewing tobacco (with lime tube) | 2403 99 10 | 142% |
| Filter khaini | 2403 99 10 | 160% |
| Jarda scented tobacco | 2403 99 30 | 160% |
| Pan masala containing tobacco ‘Gutkha’ | 2403 99 90 | 204% |
| Non- filter | ||
| Not exceeding 65 mm | 2402 20 10 | 5% + Rs.1591 per thousand |
| Exceeding 65 mm but not 70 mm | 2402 20 20 | 5% + Rs.2876 per thousand |
| Filter | ||
| Not exceeding 65 mm | 2402 20 30 | 5% + Rs.1591 per thousand |
| Exceeding 65 mm but not 70 mm | 2402 20 40 | 5% + Rs.2126 per thousand |
| Exceeding 70 mm but not 75 mm | 2402 20 50 | 5% + Rs.2876 per thousand |
| Others | 2402 20 90 | 5% + Rs.4170 per thousand |
| Cigar and cheroots | 2402 10 10 | 21% or Rs. 4170 per thousand, whichever is higher |
| Cigarillos | 2402 10 20 | 21% or Rs. 4170 per thousand, whichever is higher |
| Cigarettes of tobacco substitutes | 2402 90 10 | Rs.4006 per thousand |
| Cigarillos of tobacco substitutes | 2402 90 20 | 12.5% or Rs. 4,006 per thousand whichever is higher |
| Other | 2402 90 90 | 12.5% or Rs. 4,006 per thousand whichever is higher |
| ‘Hookah’ or ‘gudaku’ tobacco tobacco bearing a brand name | 2403 11 00 | 72% |
| Tobacco used for smoking ‘hookah’or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ | 2403 11 00 | 17% |
| Other smoking tobacco not bearing a brand name. | 2403 11 90 | 11% |
| Smoking mixtures for pipes and cigarettes | 2403 19 10 | 290% |
| Other smoking tobacco bearing a brand name | 2403 19 90 | 49% |
| Other smoking tobacco not bearing a brand name | 2403 19 90 | 57% |
| “Homogenised” or “reconstituted” tobacco, bearing a brand name |
2403 91 00 | 72% |
| Preparations containing chewing tobacco | 2403 99 20 | 72% |
| Snuff | 2403 99 40 | 72% |
| Preparations containing snuff | 2403 99 50 | 72% |
| Tobacco extracts and essence bearing a brand name | 2403 99 60 | 72% |
| Tobacco extracts and essence not bearing a brand name | 2403 99 60 | 65% |
| Cut tobacco | 2403 99 70 | 20% |
| All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name | 2403 99 90 | 96% |
| All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name | 2403 99 90 | 89% |
| Coal; briquettes, ovoids and similar solid fuels manufactured from coal. | 2701 | Rs.400 per tonne |
| Lignite, whether or not agglomerated, excluding jet | 2702 | Rs.400 per tonne |
| Peat (including peat litter), whether or not agglomerated | 2703 | Rs.400 per tonne |
| Motor vehicles (10<persons <13) | 8702 | 15% |
| Small Cars (length < 4 m ; Petrol<1200 cc ) | 8703 | 1% |
| Small Cars (length < 4 m ; Diesel < 1500 cc) | 8703 | 3% |
| Mid Segment Cars (engine < 1500 cc) | 8703 | 15% |
| Large Cars (engine > 1500 cc) | 8703 | 15% |
| Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) | 8703 | 15% |
| Mid Segment Hybrid Cars (engine < 1500 cc) | 8703 | 15% |
| Hybrid motor vehicles > 1500 cc | 8703 | 15% |
| Hydrogen vehicles based on fuel cell tech > 4m | 8703 | 15% |
| Motorcycles (engine > 350 cc) | 8711 | 3% |
| Aircrafts for personal use. | 8802 | 3% |
| Yacht and other vessels for pleasure or sports | 8903 | 3% |
BENEFITS OF GST:-
- GST will provide uniformity in implementation of tax rate and end cascading effects.
- Enhancement of Revenue in States and Union with reduce in tax administration of these taxes.
- Eliminates the multiplicity of taxation which will in turn help to reduce the paper work.
- One Point Single Tax will be implemented under GST which will help the business community to decide their supply chain, pricing modalities and in long run will help to stabilise pricing market.
Input Credit Utilisation and Payment of GST
Input credit is taxes charges on the purchase of goods and services.
Please remember: CGST can’t be used to adjust SGST.
Thus the tax credit of CGST shall be first utilised towards the payment of output CGST and then towards the payment of output IGST. Similarly, the tax credit SGST shall be first utilised towards the payment of output SGST and then towards the payment of output IGST.
Reference:
I hope this article helped you to find right GST rate for your business product. We have tried to compile as much information as possible spending hours. Feel free to share this article on social media to say Thanks.
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