The Goods and Services Tax (GST) rates are available on this platform. Previous indirect taxes like service tax, excise duty, and value-added tax (VAT) were all replaced by the GST system. The system aims to boost tax remittances to state and central governments while easing indirect taxation from different sources.
You can find the latest Goods and Services Tax rates at cbic-gst.gov.in and affiliated websites. Let’s explore how you can see current GST rates, how to use the GST rate finder, the benefits of the tax regime, and more.
Table of Contents
GST Overview
The Ministry of Finance executes the GST regime through its Department of Revenue. The Department of Revenue supervises the operations of a Central Board of Indirect Taxes and Customs (CBIC) to operate GST. GST replaces indirect taxes and streamlines payments to the CBIC for efficient tax remittance and collection.
There is a GST council tasked with the periodic review of rates on the list. The council makes these adjustments based on industry needs or due to prevalent economic conditions. Recent updates on rates by the GST council are available via this link (https://gstcouncil.gov.in/sites/default/files/goods-rates-booklet-03July2017.pdf).
The GST Council classifies its rate list according to five slabs – 0%, 5%, 12%, 18%, and 28%. These slabs have categories of goods and services assigned to each based on present economic conditions and periodic council reviews.
How to Use the GST Rate Finder
The CBIC GST rate finder promotes easy location of diverse levies on goods and services. It is available as a mobile app on Google Play Store. Follow these steps to get the rate finder on your mobile for easy search queries for levies on various goods and services in India:
Step 1: Visit the CBIC GST official website at https://cbic-gst.gov.in/,
Step 2: Click on ‘Archives’ in the main menu,
Step 3: Select the CBIC GST Rate Finder – Apps on Google Play option. The system will redirect you to the Google Play Store,
Step 4: Tap ‘Install’ to begin downloading relevant app files onto your mobile device,
Step 5: Click on Open to access the app
You can also access a list of diverse items under the GST regime without downloading an app. Follow these steps to check rates of taxed goods and services on your computer:
Step 1: Visit the CBIC GST entities direct link at https://www.cbic.gov.in/entities/gst,
Step 2: Go to the ‘GST Rates, Ready Reckoner’ section,
Step 3: Click on the link that says GST Ready Reckoner indicating updated Central Goods and Services Tax (CGST) rates on goods
The link will display rates on goods covered under this tax regime. You can also select the link ‘GST Rates of Services’ to get details on services listed under the GST system.
How to Find Latest Goods and Services Tax (GST) at cbic-gst.gov.in
Step 1: Visit the official CBIC website, (cbic-gst.gov.in)
Step 2: Scan the page for its ‘GST Rates, Ready Reckoner’ sector,
Step 3: Click on the ‘Goods Rates Booklet’
Tapping the Goods Rates Booklet will provide information about the latest GST rates on several goods. The Goods Rates Booklet does not contain rates related to services covered under GST. Follow these steps to see the latest services tax:
Step 1: Visit the official CBIC website,
Step 2: Scan the page and select ‘Service Rates Booklets’ under the ‘GST Rates, Ready Reckoner’ section
Details on the new rates are also available through this link (https://www.cbic.gov.in/entities/cbic-content-mst/)
What is the CGST Rate?
The Central Goods and Services Tax (CGST) is a levy collected by India’s central government for intra-state business transactions. It is an indirect tax housed under the GST regime in India. For example, let’s say a salt supplier in Pune, Maharashtra sells his products to another dealer in the same city. The seller is expected to pay a CGST levy for this transaction.
Benefits of GST
Higher tax compliance
GST replaces several indirect taxes levied on goods and services before its introduction. The tax regime promotes tax compliance by avoiding duplication of levies on goods and services. Bringing every tax item under one structure allows businesses greater ease to settle charges.
Streamlined levies
Putting all tax items into one regime helps businesses achieve greater comfort in settling charges on goods and services. The GST system promotes direct settlement of levies, avoiding indirect payments that could be cumbersome.
Reduction in tax evasion
Shunning the disorganized indirect tax system for GST has been of great benefit to the central and state governments in India. The merged tax regime helps state and central authorities perform collections with greater ease compared to several indirect levies before GST’s introduction.
Boosted economic growth
The harmonized tax system promotes better economic growth potential across India. Merging indirect tax regimes into the GST system encourages greater ease of doing business (EoDB) in India.
What is the SGST / UTGST Rate, and IGST Rate?
SGST
State Goods and Services Tax (SGST) is a levy placed on intra-state transactions of goods and services supplied throughout a state. Every state government in India collects this tax based on rates placed on various items and services. Goods subject to SGST may also attract a central levy in the form of CGST. Common tax rates in the SGST regime range from 0% to 14% in most states.
UGST
The Union Territory Goods and Services Tax (UGST) is an indirect levy on intra-state supply of goods and services. It is a levy separate from the UGST; however, it may not apply to all goods and services where SGST levies are in effect.
IGST
Integrated Goods and Services Tax (IGST) is an exclusive tax applied to goods and services in India. The tax targets exports, imports, and inter-state sale of goods and services. Items and services subject to this tax must remit a certain rate to the central government. The central government collects and administers the IGST regime based on the IGST Act.
Aggregated collections from the IGST are divided among various states with a stake in the sale. The central government also keeps a share of accrued taxes from IGST collections.
Which Goods are Exempted from the GST Rates List?
Several goods are exempted from the GST rates list in India. These goods are not subject to taxes of any kind as they fall under the ‘essential items’ category.
The policy targets making essential items easy to access and affordable to India’s general population. Goods and services exempted from the tax list usually include healthcare products, educational services, and food items. The common list of exempt items from GST in India include:
Select raw materials – certain exemptions in the category restricts taxation on silk (raw and waste). Other products exempt from GST in this category include cotton (for khadi yarns), firewood, handmade fabric, charcoal, and other items.
Tools and instruments – special tools included in this list are shovels, agricultural tools, and other handmade implements.
Food items – edible tubers and roots, unprocessed meat and fish (fresh), jaggery, tender coconut, raw coffee beans, planting seeds, turmeric, betel leaves, flour, milk, aquaculture supplements, and other items are tax-exempt goods.
Other goods exempted from CBIC GST levies include:
- Live Animals, Natural Products, Live Trees and Plants
- Vegetables, Fruits, Dry Fruits
- Tea, Coffee, and Spices
- Grains, Products of the Milling Industry
- Seeds, Water, Baked Goods
- Fossil Fuels, Fertilizers, Pottery
- Waste, Ornaments, Newsprint
- Printed Items, Fabrics, Hand Tools
Certain services in the transportation, agricultural, judicial, medical, and other sectors are also exempted from the tax regime. You can view the entire collection of exempted items from GST at the CBIC official website.
It is worth noting that exempted goods and services are not zero-rated items. Any business dealing with exempt goods and services do not have access to credit for GST paid on items used for its production.
What is the HSN Code List?
The Harmonized System Nomenclature (HSN) is a coding system devised to classify all goods under the GST system. Every taxable good under the GST gets a unique HSN identifier. The HSN code determines GST rates on all goods throughout India’s taxation system (which range between 0% and 28%).
How to Use the HSN Code Search GST Rate
Visit the ‘GST Rates FAQs’ section for details about the HSN code and search GST rates on various items. The page (https://cbic-gst.gov.in/gst-rates-faq.html) also provides details on other topics related to HSN codes and GST rates.
How is the HSN Code List Compiled?
The HSN code list for GST is compiled based on goods classifications. Each item on the list attracts a defined GST rate based on its classification along with changes made by the moderation council.
The HSN list compilation was coined from a similar system developed by the World Customs Organization. However, the code does not apply to services listed for levy collections under the GST regime.
What is the SAC?
The Services Accounting Code (SAC) system is a special coding class created to rank services under the GST regime. This system was created by the Service Tax Department of India. It covers services according to their nature and considers GST rates according to the council’s recommendations. It is a uniform tax coding system and applies to services in diverse categories.
What is GSTIN?
Goods and Services Tax Identification number is a 15-digit code assigned to all entities and persons registered under GST taxation in India. The number is based on PAN codes of taxpayers and holds information such as the registration number, checksum digit, default status, and entity code.
Holders of GSTINs can use this code for filing returns, making payments, claiming input tax credits, and more. You can verify a GSTIN online via the official portal (cbic-gst.gov.in). The code helps boost transparency, prevents tax evasion, and ensures compliance to the GST regime in India.
How to Calculate GST
GST = (Original cost of item × GST Rate ) / 100
Difference between CGST, SGST and IGST
As an example, let’s say we calculate the GST for a ₹ 10 lakh supply of sugar. The current GST rate on sugar (5%) applies in this calculation:
Hence, the GST on a ₹ 10 lakh supply of sugar is ₹ 2,000
Adding GST to the base amount will give (Original cost of item + GST amount)
= ₹ 10,00,000 + ₹ 2,000
= ₹ 10,02,000
Hence, the GST levied on a ₹ 10 lakh supply of sugar is ₹ 2,000.
How to Respond to a GST Notice
A GST notice is a letter from the Department of Revenue under the CBIC outlining potential discrepancies in an applicant’s filing. Here’s how to respond to a GST notice in six steps:
Step 1: Access the GST portal at https://cbic-gst.gov.in/cbec-portal-ui/?sabs,
Step 2: Log in to the portal with your username, passcode, and Captcha code
Step 3: Navigate to Dashboard > Services > User Services > View Additional Notice/Order
Step 4: Tap the Document link of your notice to download it
Step 5: Provide documentation to support your reply and tap the ‘Reply’ button
Step 6: Type in your response and submit