Revised GST Rates For the Year 2023

Businesses and trade groups are affected by the new GST rate changes. The reason for this is that the rates have changed. Whether you're a business or a customer, this change makes everyone consider how they're doing. In India, GST rates are divided into four groups: 5%, 12%, 18%, and 28%. These are the four categories of goods and services. This article explains the GST rate and how it has changed over time.

On February 28, 2023, the Central Board of Indirect Taxes and Customs (CBIC) issued food central tax (Rate) announcements and one compensation cess notice. These are the GST rate cut adjustments announced during the 49th GST Council conference on February 18th, 2023. These GST-reduced items and changes hereafter took effect from March 1, 2023.

Did you know? GST is the national government's single indirect tax. The GST was implemented on July 1, 2017, and states were guaranteed compensation for revenue losses caused by the GST implementation until June 2022.

Meaning of GST Rates

The proportion of the tax rate on the exchange of products or services under the tax laws is known as the GST rate. A business registered for GST must issue tax receipts containing GST amounts levied on the worth of service. The GST rates for intra-state transactions are somewhat the same. The GST rate for inter-state transactions is roughly equal to the sum of the SGST and CGST rates.

GST Primary Slabs

The GST tax slabs for taxpayers are 28%, 18%, 12%, 5%, and 0%. While two alternative GST rates are less frequently used due to their qualifying criteria, these are 3% and 0.25%.
Individuals registered in the composition framework pay GST at minimal or lower rates, such as 1.5%, 5%, or 6% of their turnover.
TDS (2%) and TCS (1%) are also included in the GST bracket prices in India.
To determine the GST rate cut on a tax invoice, multiply the tax rate by the taxable supply value.
In addition to the GST slab rates, a cess is collected under the GST law on the supply of specified items such as cigarettes, gasoline, motor vehicles, etc. The cess rate ranges between 1% and 204%.

GST Rates in India for 2023

Budget 2023 introduced adjustments in the GST rates enacted at the end of December 2022. During its sessions, the Committee on GST also changed the GST rates cut list on several essential commodities. Below are a few changes to the GST rate cut in India with the new GST rates in 2023.

Important GST Rate Changes: Changes to GST Rates During the 49th GST Council Meeting

The 49th GST Council meeting was held on February 18, 2023, to approve the following GST rate cut revisions:

Item	GST Rate after amendment	GST before amendment
Liquid Jaggery*	Nil when sold loose/ 5% on packaged.	18%
Pencil Sharpeners	12%	18%
Tracking devices for durable containers**	Nil	Applicable rates
Coal rejects	Exempted	Applicable rates
Boards for entrance exams	Exempted	Applicable rates
Husk from pulses/ Foder for cattle	5%	Nil
Ethyl alcohol	18%	5%

*According to the CGST announcement published on February 28, 2023, it will be effective on March 1, 2023.

**Effective as of a yet-to-be-determined date.

The revision of GST on cement was not considered in the fitment committee meeting but will be discussed at the next Council meeting.
Due to time constraints in the automobile sector, the MUV categorisation could not be addressed.
No final agreement was achieved on lowering GST rates for millet-based health goods.
Reversed charge GST would be levied on renting commercial space, effective from March 1, 2023.

GST Rate Cut List 2023

Following are the changes made in the GST Rate cut in 2023.

Increased GST Rates

Item/Category	Old GST Rates	New GST Rates

Railway goods and parts	12%	18%
Pens	12%	18%
Metal concentrates and Ores	5%	18%
Renewable energy devices	5%	12%
Media reproduction and prints	12%	18%
Broadcasting, Sound recording, Printing	12%	18%
Printed material	12%	18%
Containers and boxes for packing	12%	18%
Scrap and polyurethanes	5%	18%

List of Items on Which GST is Reduced in 2023

Below is the list iterating the items on which GST rates were reduced today (as on the amendment day) or the rates for which GST was decreased.

Item	GST Rate after amendment	GST before amendment
Retrofits for disabled	Applicable rates	5%
Keytruda for cancer	12%	5%
Goods sold at Indo Bangladesh border	Applicable rates	Nil

GST Rates Cut List for Other Products

Item/ Product	Tax Rates
Milk	Nil
Eggs	Nil
Curd	Nil
Lassi	Nil
Kajal	Nil
Education services	Nil
Health services	Nil
Children art books	Nil
Unpacked foodgrains	Nil
Unpacked Paneer	Nil
Gur	Nil
Natural honey	Nil
Vegetables	Nil
Salts	Nil
Atta	Nil
Maida	Nil
Besan	Nil
Prasad	Nil
Palm Jaggery	Nil
Jhadoo	Nil

Semi-precious Stones	0.25%

Diamond work and diamond	1.50%

Sugar	5%
Tea	5%
Packed paneer	5%
Coal	5%
Edible oils	5%
Raisins	5%
Domestic LPG	5%
Roasted coffee beans	5%
Kerosene	5%
Skimmed milk powder	5%
Chasew nuts	5%
Footwear	5%
Milk food for kids	5%
Apparels	5%
Fabric	5%
Coir mats, floor coverings	5%
Spices	5%
Agarbatti	5%
Coal	5%
Indian sweets	5%
Life-saving drugs	5%
Coffee	5%

Butter	12%
Ghee	12%
Computers	12%
Processed foods	12%
Almonds	12%
Mobiles	12%
Fruit juice	12%
Coconut water	12%
Vegetable and fruit preparations	12%
Umbrella	12%

Hair oil	18%
Capital goods	18%
Toothpaste	18%
Industrial Supplies	18%
Soaps	18%
Icecreams	18%
Pasta	18%
Toiletries	18%
Cornflakes	18%
Soups	18%
Printers	18%

Small cars	28%
Motorcycles	28%
Consumer durables	28%
Luxury items	28% with cess
Aerated drinks	28% with cess\

Summarised and Latest Updates on GST Rates

Following are the latest updates on the GST Rate revision.

March 31, 2023: Haryana AAR has decided on M/s. Oswal Poly Rubbers. The PVC cushion mats were subject to an 18% GST.
February 20th, 2023: In the 49th GST Council meeting, the government of India issued a press release outlining the revised rate of pencil sharpeners and Rab.
22nd of July, 2022: Kerala Finance Minister K N Balagopal said in a statement on Thursday that the state had repeatedly expressed reservations about the imposition of GST rate on certain packaged foods, contradicting claims made by India's Finance Minister that even states without a BJP government support the taxation plan.
20th of July, 2022: According to the GST Council, certain products are GST-free if sold loose and not pre-packaged or pre-labelled. The list is given above iterates them all. These goods will be exempt from GST.

GST Rates on Printers

On June 11, the GST Council decided to place the GST rate on printers in the 18% slab, following uncertainty over whether printers will be in the 28% or 18% slab. However, the amended rate agreed by the GST Council said that printer gst rates (other than multifunction printers) would be 18%.

GST on CCTV Camera

CCTV security cameras and accessories are subject to 18% GST. This CCTV camera GST rates apply to the cameras and the accompanying accessories. It is crucial to remember that these GST rates on CCTV cameras are subject to change. Thus, it is advised that you check with the government frequently for any adjustments.

GST on Pickles

Pickles are subject to a 12% GST. This category includes pickles, mustard sauce, and Indian murabba. The GST on pickles and the rate for ketchup, quick meal mixes, food toppings, and cutlery has been reduced from 18% to 12%. Vegetables, fruit, nuts, and other edible plant parts cooked or preserved using vinegar or acetic acid are also subject to a 12% tax.

GST on Notebooks

The appropriate GST rate is 12% on a laptop or a notebook. Earlier, the notebook GST rates were paid at a rate of 14-15% on laptop sales, depending on the state in which the transaction was made. However, GST on notebooks is now applied at an 18% rate, raising the overall price somewhat beyond what consumers would have paid in the pre-GST era.

Agarbatti GST Rates

Agarbatti is subject to a 5% GST. Dhoop agarbatti is also subject to 5% GST. Tooth powder, agarbatti, and other odoriferous products that work by burning are subject to a 12% tax.

Conclusion

GST has been important in Independent India, exemplifying the ethos of Cooperative Federalism. While expectations are great, there are also significant hurdles. Under the leadership and monitoring of the GST Council, these problems are addressed skilfully and meticulously every year. The proper mix of assistance and enforcement has resulted in dramatically improved compliance. In its 49th meeting, the GST Council suggested using the reverse charge system to tax services provided by courts and tribunals.

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Revised GST Rates As Per Budget 2023