How many tax slabs are there in GST?

By | November 21, 2021

Table of Contents

The GST is an amazing topic to know and understand and that is why may people are interested in it. One should be aware about the fact that GST should be known and understood by everyone around. There are 4 tax slabs in GST and these slab rates are 5%, 12%, 18% and 28%. All these 4 slabs are divided on the basis of popular goods and services and various goods and services falls under different tax slab under GST. All the services and goods are divided in to these 4 slabs on the basis of their needs and uses.

4 tax slabs of GST

There are 4 tax slabs of GST i.e. 5%, 12%, 18% and 28% and we will further discuss what are various goods and services that fall under these 4 slabs of GST as follow:-

  1. GST slab of 5%

Under the GST slab of 5% lies the basic facilities that are needed by anyone. The oil, sugar, coffee, coal, fertilizers, tea, Ayurveda medicines, spices, fish fillet, handmade carpets, etc. are the various basic goods that falls under this GST slab of 5%. The services that fall under this 5% slab of GST are airways, railways, hotel rooms, takeaway food, AC and Non- AC restaurants, etc. All the basic amenities fall under this category because this is something that is needed by the people.

  1. GST slab of 12%

The GST slab of 12% consists goods like sewing machine, umbrella, jewellery box, frozen meat, fruit juices, cheese, butter, ghee etc. The services that comes under GST slab of 12% are the business class flight tickets and also the movie tickets below rupees 100. These goods are not basic but still are needed so that is why it is kept under GST slab of 12%.

  1. GST slab of 18%

Under the GST slab of 18% the products like pasta, safety glass, hair shampoo, hair oil, scent sprays, mineral water, detergent, oil powder, cookers, ice- cream, suitcase, batteries, wrist- watches, television, leather clothing, washing machine, water heaters, cutlery, video games, etc. are there and these items are not something that is needed by every person of the country and that is the reason that it is kept under the higher slab of GST and that is of 18%. The services that comes under the 18% tax slab of GST are movie tickets about rupees 100, restaurants within hotels whose tariffs are above rupees 7500 etc. All these services are not needed by everyone or it is not a daily necessity and because of this reason the tax slab is high for these services.

  1. GST slab of 28%

The goods that comes under the GST slab of 28% are cars, durable consumer products, cigarettes, weighing machine, pan masala, cement, etc. under this slab there are around 200 products that are being covered. The goods under this 28% slab is not needed by everyone in the country and all the luxurious items are kept under this slab and also not all people can afford these items and the tax on this are also therefore higher. Also the services under this 28% GST tax slab are betting in casinos, racing, high prices hotels and all the other luxurious services which otherwise are not needed comes under this tax slab of GST. This tax slab usually caters to the luxurious services and goods that are not for everyone or that can be afforded by few people as these goods and services are not the basic or semi- basic needs of the citizens of India and these are all leisure goods and services which means that it is not needed on daily basis by the people.

These are the 4 tax slabs of the GST under which the various goods and services has been divided depending up on their needs and usage. Higher the need it will come under lesser tax slab of GST.

How 4 Tax Slabs of GST Works?

These 4 tax slabs of GST are designed in such a manner that they can easily cater to the needs and requirements of the people of India. So according to the priority of the goods and services, these things are categorised under the 4 tax slabs of GST and one can check accordingly what they are looking for and how much they have to pay for the goods and services depending up on the tax slabs of the GST.

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Category: GST