The tax rate in GST (Goods and Services Tax) on goods and services varies depending on the type of good or service being provided. The GST Council has classified goods and services into various tax slabs, ranging from 0% to 28%. The GST tax rates for goods and services are as follows:
- 0% GST: No GST is charged on essential goods such as food grains, fresh fruits and vegetables, milk, healthcare services, education services, etc.
- 5% GST: Items such as coffee, tea, sugar, edible oils, spices, agarbatti, etc. attract a GST rate of 5%.
- 12% GST: Goods such as cell phones, spectacles, processed food, frozen meat products, textiles, etc. attract a GST rate of 12%.
- 18% GST: Most goods and services such as soaps, detergents, furniture, ACs, refrigerators, hotels and lodges, IT services, financial services, etc. attract a GST rate of 18%.
- 28% GST: Luxury goods and services such as cars, tobacco products, aerated drinks, high-end hotels, etc. attract the highest GST rate of 28%.
It is important to note that certain goods and services, such as petroleum products and alcohol, are outside the purview of GST and are subject to separate state and central taxes.
These tax rates are subject to change from time to time as per the recommendations of the GST Council.
