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written by khatabook | November 5, 2019

GST Rates in 2022 – List of GST Rates, Slab and Revision

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Table of Content


By delivering consistency and openness, the Goods and Services Tax (GST) has altered the way the Indian taxation system looks. One of the most substantial tax changes ever made, the Goods and Services Taxation System was enacted to stop the older tax system's cascading effects. 

GST is gathered at every stage of the supply chain, eradicating the tax on tax or the cascading effect of tax. Businesses have benefited from this paradigm-shifting tax reform in many ways, which have helped them grow their operations and the economy in general. 

Since the Goods and Services Tax was implemented, the market has become more competitive, which benefits small and medium-sized businesses. GST has decreased the cost of transportation and made the national market freely available for SMEs for future company development. 

Did you know? Under the new GST tax regime, three more months have been added to the GOM on Rate Rationalisation. 

What are GST Rates in India? 

Several GST tariffs have been set to increase openness and confidence between buyers and sellers in the taxing process. Depending on specific criteria, every one of these slabs contains several types of things. 

The GST Council determines these rates. Periodically, this Council updates the rate slab for products and services. Typically, the GST rates are high for luxuries and low for necessities. There are four different GST rates in India for different commodities and services: 5%, 12%, 18%, and 28% GST. 

Also Read: GST benefits - 7 Ways One Must Know How GST benefits the Economy

GST Rate Changes from 18th July 2022 

On July 13, 2022, the government issued 9 Central Tax Notifications with the numbers 03/2022 through 11/2022. These GST rate adjustments will take effect on July 18, 2022. Additionally, a few basic necessities no longer qualify for exemptions. Revised rates for goods subject to an inverted tax system received official notification. 

GST Rate Revision in 47th GST Council Meeting 

The 47th GST Committee meeting took place on June 28 and 29, 2022. The following GST rate changes were made, along with the reduction of the exemption list and the adjustment of the inverted tax regime. 

Also Read: What was the impact of GST on Real Estate?

Changes in the Inverted Tax Regime

Description

Old Rates

New Rates

Solar water heaters and systems

5%

12%

Prepared, finished, chamois or composition leathers

5%

12%

Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing

5%

12%

Earthwork works contracts and sub-contracts to the Central and state governments, Union Territories and local authorities

5%

12%

Pawan Chakki being air-based atta chakki, wet grinder, cleaning, sorting or grading machines for seeds and grain pulses, and milling machines or cereal making machines, etc;

5%

18%

Ink for drawing, printing, and writing

12%

18%

Knives with paper knives, cutting blades, pencil sharpeners and its blades, skimmers, cake-servers, spoons, forks, ladles, etc

12%

18%

Centrifugal pumps, submersible pumps deep tube-well turbine pumps, bicycle pumps that are power-driven mainly for handling water

12%

18%

Milking machines and dairy machinery, cleaning, sorting or grading machines and its parts for eggs, fruit or other agri produce

12%

18%

Lights and fixture, LED lamps, their metal printed circuits board

12%

18%

Marking out and drawing instruments

12%

18%

Services by foreman to chit fund

12%

18%

Works contract for railways, metro, roads, bridges, effluent treatment plant, crematorium, etc.

12%

18%

Works contract and sub-contract to the Central and state governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals, etc

12%

18%

Refund of accumulated ITC for edible oils and coal is disallowed.

Other Hikes and Cuts in GST Rates

Description

Old Rate

New Rate

Cut and Polished diamonds

0.25%

1.50%

Tetra Pack (Aseptic Packaging Paper)

12%

18%

Tar (From coal, or coal gasification plants, or producer gas plants and coke oven plants)

5%/18%

18%

Import of Diethylcarbamazine (DEC) tablets free of cost for National Filariasis Elimination Programme (IGST)

5%

Nil

Import of particular defence items by private businesses or suppliers for end-consumption of Defence (IGST)

Applicable rates

Nil

Ostomy Appliances

12%

5%

Orthopedic appliances such as intraocular lens, artificial parts of the body, splints and other fracture appliances, other appliances which are worn or carried, or body implants, to compensate for a defect or disability

12%

5%

Transport of goods and passengers by ropeways (with ITC of services)

18%

5%

Renting of truck or goods carriage including the fuel cost

18%

12%

Exemptions under GST reduced

Description

Old Rate

New Rate

Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed

Nil

12%

Cheques, lose or in book form

Nil

18%

Parts of goods of heading 8801

Nil

18%

Air transportation of passengers to and from north-eastern states and Bagdogra now restricted to economy class

Nil

Condition added

Transportation by rail or a vessel of railway equipment and material, storage or warehousing of commodities attracting tax such as copra, nuts, spices, jaggery, cotton, etc, fumigation in a warehouse of agri produce, services by RBI, IRDA, SEBI, FSSAI, and GSTN, renting of residential dwelling to GST-registered businesses, and services by the cord blood banks for preserving stem cells

Nil

Applicable rate

Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITC

Nil

5%

Common bio-medical waste treatment facilities for treating or disposing biomedical waste shall be taxed with availability of ITC, like CETPs

Nil

12%

Hotel accommodation priced up to Rs.1,000 per day

Nil

12%

Training or coaching in recreational activities on arts or culture, or sports other than by individuals

Nil

Applicable rate

Petroleum/ Coal bed methane

5%

12%

e-Waste

5%

18%

Scientific and technical instruments to public funded research institutes

5%

Applicable rate

GST Rate Changes from 1st January 2022 

The government increased the goods and services tax on commodities, including clothing, textiles, and footwear. The GST rate for textiles has increased from 5% to 12%, while the tax on the clothing of any price has also increased from 5% to 12%. 

GST Rate Revision in 45th GST Council Meeting 

The following conclusions on the GST rates were made during the 45th GST Cabinet meeting on September 17th, 2021. 

Category

Old Rate

New Rate

Railway goods, locomotives, and parts

12%

18%

Pens

12%

18%

Metal concentrates and ores

5%

18%

Renewable energy devices

5%

12%

Printed material

12%

18%

Scrap and plastic waste

5%

18%

GST Rate Revision in 44th GST Council Meeting 

The following agreements on the GST rates in force through September 30, 2021, were made during the 44th GST Cabinet meeting, held on June 12th, 2021. 

Category

Old Rate

New Rate

Hand sanitisers

18%

5%

Equipment to cheek body temperature

18%

5%

Abmulances

28%

12%

Testing kits

12%

5%

GST Rate Revision in 43rd GST Council Meeting 

  • Up to the end of August 2021, relief products exports will not be subject to GST. 
  • A list of pharmaceuticals that are exempt from GST is also included. 
  • Until the end of August 2021, any Covid-related relief commodity imported with the aim of giving it to the authorities or any charitable organisation would be free from IGST. 
  • The finance minister introduced the Amnesty System to cut down on late fee payments. Under this plan, small taxpayers may file GST returns. 

GST Rate Revision in the 42nd GST Council Meeting 

The meeting's top points are listed here from October 5, 2021. 

  • Small taxpayers with revenue of under ₹5 crores can now submit quarterly GSTR-3B and GSTR-1 applications, with the 13th day of the month following the quarter serving as the specified deadline for the GSTR-1 application. At the start of 2021, this regulation went into force. This rule's execution has resulted in a decrease in the number of returns from 24 to 8. 
  • For the first 2 months of the quarter, quarterly taxpayers will have the choice of paying 35% of their total tax obligation from the previous quarter by using automatically issued challan. 
  • Taxpayers with annual revenue of ₹5 crores or more are required to provide a 6-digit HSN number. Taxpayers having revenue of fewer than ₹5 crores are necessary to provide a 4-digit HSN code. 
  • Refunds would be sent to bank deposits whose PANs are linked to Aadhaar. 
  • To promote space launching services within India, the GST will not apply to ISRO, Antrix Corporation, or New Space India Limited. 
  • Sanitisers that don't include alcohol will continue to be subject to an 18% GST levy. 
  • The total compensation levy collected up to this point is ₹20,000 crore. By October 5, 2020, this sum had been distributed to particular Indian states. 

GST Rate Revision in the 41st GST Council Meeting 

On August 27'th, 2020, the Union Minister Of finance presided over the 41st GST Cabinet meeting. In regions where the FRBM Act governs the lending limit, the government would grant an extra 0.5% relaxation, according to the revised assessment. Due to the damage inflicted by the coronavirus pandemic, states are now able to borrow more money. 

Also Read: GST Billing Software – Return Filing & Accounting Software

Conclusion:

Prior to the implementation of the GST administration in India, the country's tax system was a patchwork of several separate levies, some of which were imposed locally and caused key challenges as well as corruption.  An undesirable tax-on-tax scenario resulted from the preceding tax structure's cascading tax effect, making it difficult to regulate. Confusion resulted from this, and maintaining such a complicated system was expensive.  

The GST Council determines the GST tax slabs. The GST Council frequently revises the rate slab for goods and services. Typically, the GST rates are higher for luxuries and low for necessities. There are four different GST rates in India for different commodities and services: 5%, 12%, 18%, and 28% GST. Since the Goods and Services Tax was introduced, the GST Council has altered the GST rates for a number of items. At the 47th GST Council Meeting on June 28, 2022, the most recent rate adjustment went into effect. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What is ITC in GST?

Ans:

One of the primary characteristics of the Goods and Services Tax is the consistent and flawless channel of the input tax credit, or "ITC." ITC is a tool used to prevent tax cascading, and the term "tax on tax" refers to cascading taxes.

Q: Are all goods and services taxable under GST?

Ans:

GST will be applied to every commodity and service, with the exception of alcoholic beverages for human consumption. Petroleum and petroleum-based products will be liable to GST taxation later, which will be announced based on the Goods and Services Tax Council's proposal.

Q: What is the HSN code?

Ans:

Harmonized System of Nomenclature code is referred to as HSN. This 6-digit number is used to categorise various items. HSN tags have been utilised by manufacturers, importers, and exporters for a very long period.

Q: What are the recent GST changes?

Ans:

On pre-packaged, clearly labelled foods like paneer and curd, there is a 5% GST. Maps and charts, as well as hotels, stay with daily rates up to ₹1,000, are subject to a 12.5% GST. 10% GST on hospital wards (apart from ICU) with rent beyond ₹5,000. Tetra packs and checks are subject to 18% GST. 

Q: What is RCM in GST?

Ans:

In relation to the specified supply categories, reverse charge refers to the tax obligation falling on the beneficiary of the provision of goods or services rather than the provider of such products or services.

Q: What are the 3 types of GST?

Ans:

India now has three different forms of GST: CGST, SGST, and IGST. This straightforward separation reduces indirect taxes by identifying interstate and intrastate suppliers.

Q: What are the 4 slabs of GST?

Ans:

The GST Council has divided more than 1300 products and 500 services into four tax brackets for GST: 5%, 12%, 18%, and 28%. This is in addition to the GST-adjusted special rate of 0.25% for unpolished precious and semi-precious gemstones and the 3% tax on gold.

Q: Can a GST refund on GST filing be like an ITR refund?

Ans:

The GST regulators may reimburse the excessive amount of money the business paid if more tax has been collected than is necessary. The company must use the right computing technique and GST tax bracket rates to determine the precise net GST amount due. The business must report both GST paid by the entity and GST collected from the entity. From the raw material stage through to the completed product/service step, there may be a number of suppliers involved in the supply chain of any given product or service. 

Q: How to file GST returns online?

Ans:

GST returns may be filed on time after enrolling on the official GST portal. The webpage offers details on various forms needed for GST filing.

Q: Can GST returns be filed online?

Ans:

Like ITR, GST may be submitted online. Businesses must register through the official GST site in order to submit GST digitally. The enrolled individual can use a personal ID and password to log in and access their unique GST account after successfully registering.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.