Before Unveiling the GST tax rates, you must understand what is GST all about? Basically, the Goods & service tax is an indirect tax that got introduced in India in the year 2017 of 1st July and got applicable throughout whole India that replaced many cascading taxes that were levied by state and central government. It was also introduced in the Constitution act 2017 that followed the passage of the 122nd amendment act bill of a constitution. The GST is one which is governed by GST council and chairman is also Finance minister of India. Under the GST, good and services get taxed at following rates as 0 percent, 5 percent, 18 percent and 28 percent.
GST Tax Rates For Different Items
There are special rates of around 0.25 percent on the rough precious as well as semi-precious stones & 3 percent on the gold. Addition to the cess of around 22 percent on the top of 28 percent, the GST applies on some items as aerated drinks, tobacco products, luxury cars. The GST replaced the slew of the indirect taxes with unified tax and therefore set dramatically reshaping of country’s two trillion dollar economy. Similarly, the Goods & service tax or GST is one of the biggest and awaited tax reform in India in the last 70 years.
What does GST claims?
GST also claims for unifying all taxes that are levied throughout the country in the bid for eradicating the inflation and also inducing the economic growth. The tax system got categorized in 4 ranges as 5 percent, 12 percent, 18 percent and 28 percent. Understand these four ranges of slabs below as
- 5 percent slab: the council of GST while Unveiling the GST tax rates stated that it is very keen to eradicate inflation as it cut taxes that were levied on food and grain. For adding more, 5 percent of the tax slab was levied on common usage of products in comparison to 9 percent earlier.
- 12 percent and 18 percent slab: the 2 standard rates that will be applicable on the bulk item as processed products, soaps, oil and others even get categorized further in upcoming session as the commodity falls in such a slab.
- 28 per cent slab: the GST council is even keen to uplift economic equality as top percentile slab gets applied on white goods and luxury along with the aerated drinks and tobacco.
The GST council has put in their best efforts for getting rid of all indirect taxation and as an attempt for gaining steady control over the administration of the whole system of tax. This writes up shares all about tax rates implemented by GST in recent year. Going through this guide thoroughly will help you to know what is GST and what are the tax rates applied in different sectors.