What is GST Rate?
GST stands for Goods and Services Tax, and it aims to replace all taxes and levies, including excise taxes, countervailing duties, service taxes, value-added taxes, octroi, entry tax, and luxury tax. GST rates should be based on the incremental value added at each stage, not based on the gross value of the goods or services charged at each stage.
GST is a single tax applied to all goods and services from the manufacturer to the consumer. Taxes paid at each stage of value addition will be credited in the next phase of value addition under this system. Thus, the final dealer’s (seller or service provider’s) Goods and Services Tax is the final tax borne by the customer, after deducting all taxes paid in all early stages of the supply chain.
In India, the GST rate is a dynamic rate that varies according to economic conditions. On November 4, 2016, the GST Council finalized the Goods and Services Tax (GST) rate structure that ranges from 5% to 28%. This is a significant step toward implementing the country’s largest tax reform.
How to calculate GST Percentage using myBillBook
The Goods and Services Tax, or GST, has several direct and indirect effects on all industrial sectors. This has resulted in most businesses, whether small, medium-sized, or multinational, implementing GST software to assist them in managing their accounts, taxes, inventories, and ledgers.
Calculating the GST percentage using myBillBook is a good idea. You can calculate GST for a specific product using the “Online GST calculator.” With the myBillBook interface to calculate the GST, you can obtain the GST included in the product price and determine the additional GST charge for the product’s basic price. Additionally, it assists in saving time, avoiding human error, and simplifying the GST calculation process.
myBillBook GST calculator software is a comprehensive, multi-functional tool that automates time-consuming manual calculations and improves operational efficiency in terms of timely tax payment. GST reconciliation is a time-saving, cost-saving, and customizable system that enables users to access data anytime and from any location.
What are the different GST Slab rates?
Different GST slabs apply to various goods and services based on their prices and socio-economic value. India’s current GST rate chart was amended at the 37th meeting of the GST council. The GST system consists of five GST slab rates:
A tax-exempt GST slab rates, a 5% slab, a 12% slab, an 18% slab, and a 28% slab.
Items Exempt from Tax:-
According to the country’s socio-economic needs, the government has promised to exempt specified GST tax rate system items. To lighten the burden on the average taxpayer, basic goods such as fruit and vegetables, bread, flour, eggs, salt, and newspapers are exempt from paying taxes.
All hotels are charging less than Rs. 1000 per night for rooms, and bank fees on savings and Jan Dhan Yojana, are exempt from GST in the service sector.
GST Slab of 5%:-
Sugar, oil, Frozen veggies, fertilizers, plastic waste, tea, Ayurveda medicines, spices, sweets, Agarbatti, coffee, sliced dry mango, cashew, lifeboats, fish fillet, handcrafted carpets, and life-saving drugs are all covered under this GST rate list slab.
Railways, airlines, AC and non-AC hotels and restaurants, luxury hotel rooms with a tariff of less than Rupees 7,500, takeout, daily paper printing, and special flights for pilgrimage all fall under this category.
GST Slab of 12%:-
Sewing machines, umbrellas, jewellery boxes, cell phones, processed foods, purses, handbags, nuts, fruit juices, cheese, butter, and ghee are all covered under this slab.
Under this slab, you’ll find services such as construction for sale, movie bookings under Rupees 100, and business class airline tickets.
GST Slab of 18%:-
Hair oil, mineral water, hair shampoo, water heaters, washing machines, safety glass, pastries, ice cream, laundry soap, perfume sprays, leather apparel, artificial bouquets, smartwatches, cookers, cutlery, binoculars, briefcase, backpack, after-shave, TV screen, lithium-ion batteries, furniture, stationeries, mattress
Outdoor catering, information technology, and telecommunications services, restaurants within hotels with tariffs greater than Rupees 7,500, actual hotel bills less than Rupees 7,500, and cinema tickets greater than 100 are all included in this slab.
GST Slab of 28%:-
Over 200 products are covered by this slab, including automobiles, cigarettes, sunscreen, consumer durable goods, high-end motorbikes, pan masala, weighing machines, and cement.
The services included in this category are racing, cinema, casino betting, and food/drinks/accommodation at AC Five Star Hotel rooms, where the actual charge for hotel stays exceeds Rupees 7,500.
Special GST rates list in India:-
1. Gold tax remained at 3%, although 5% of GST applies to gold jewellery-making charges.
2. Under the GST, rough precious and semi-precious stones are subject to a special rate of 0.25 percent.
3. In real estate, GST is levied only on the purchase of an under-construction property.
- For affordable properties, 1 percent
- 5% for residential properties that are not affordable
- Commercial property is subject to a 12% GST.
- However, there is no GST payable on the purchase of a ready-to-move-in property.
What is GST Rate Finder and How to Use It:
On 7th July 2017, the Ministry of Finance launched the GST Rates Finder app. A user can download the ‘GST Rate Finder’ mobile application from the Play Store on Android devices. This app will also work offline and is available for download on smartphones.
The search can be optimized based on the description of goods and services or the HSN code or heading number. The application is designed to serve as a quick reference for the current GST rates determined by the Ministry of Finance. After opening the app, type the name or chapter heading of the service or product. All services and goods comprising the name entered in the search box shall be listed in the search result.
GST Rate Revision Details:
The government has recently decided to change the GST rates and preserve them at their actual rates, but customer preference and other factors have changed.
On 05 October 2020, the 42nd GST council meeting was conducted, and the following decisions regarding GST rates were made.
- GST exemption granted to ISRO, Antrix Corporation, and New Space India Limited (NSIL) promotes space launch services in India.
- Non-alcoholic sanitizers are still taxed at GST rates of 18 percent.
FAQs about GST Rate List:
Q 1.What does GST mean? How does it perform?
Ans. GST is a single indirect tax that applies to the entire country, transforming India into a unified common market.
Q2. Who decides the GST interest rate?
Ans. The GST Council sets the rates for the goods and services tax. The Council is composed of 33 members, including the Ministers of State Finance. The Union Finance Minister serves as the Council’s chairman.
Q3. What are the different kinds of GST?
Ans. GST is classified into three types:
- SGST: This tax is levied on intra-state transactions by states and union territories.
- CGST: The central government collects this tax in the event of an intra-state transaction.
- IGST: The Central government levies IGST, or Integrated GST, when the supplier of the good/service and the point of consumption are in different states.
Q4. If a person continues to operate on the same PAN number in different states, can the person operate on a single GST registration?
Ans: No. According to GST laws, sellers must take GST registration in any state from which they supply their goods.
Q5. What taxes does the GST replace?
Ans: The GST replaces a variety of different indirect taxes, including:
- Service Tax
- Central Excise Duty (CED)
- Countervailing Duty (CVD)
- Value Added Tax (VAT)
- Central Sales Tax (CST)
- Entry Tax
- Purchase Tax
- Entertainment Tax
- Advertisement Tax
- Luxury Tax
- Lottery taxes