Decoding GST Rates in India: A Comprehensive Guide Understanding the Goods and Services Tax (GST) rates in India is crucial for businesses and consumers. Governed by the GST Council, these rates are revised periodically, impacting numerous products and services. In this guide, we simplify the complexities of GST rates, highlighting recent updates and various tax slabs.

GST Council Review: Recent Changes

The 41st GST Council Meeting on August 27, 2020, brought several important changes. These changes included:

• Railways Goods and Parts (Chapter 86): Old GST Rate - 12%, New GST Rate - 18%
• Pens: Old GST Rate - 12%, New GST Rate - 18%
• Metal Concentrates and Ores: Old GST Rate - 5%, New GST Rate - 18%
• Certain Renewable Energy Devices: Old GST Rate - 5%, New GST Rate - 12%
• Recorded Media Reproduction and Print: Old GST Rate - 12%, New GST Rate - 18%
• Broadcasting, Sound Recordings, and Licensing: Old GST Rate - 12%, New GST Rate - 18%
• Printed Material: Old GST Rate - 12%, New GST Rate - 18%
• Packing Containers and Boxes: Old GST Rate - 12%, New GST Rate - 18%
• Scrap and Polyurethanes: Old GST Rate - 5%, New GST Rate - 18%

Additionally, there were reductions in GST rates for certain categories. Vehicles with retrofitting kits for disabled individuals saw a reduction from 12% to 5%. Keytruda, a cancer treatment medication, also decreased from 12% to 5%.

Diverse GST Rates Across Categories

The GST landscape in India covers a wide range of products and services, each assigned a specific tax rate. Here's an overview of these categories and their tax rates:

• 0% GST: Milk, Eggs, Curd, Lassi, Kajal, Education Services, Health Services, Children's Drawing and Coloring Books, Unpacked Foodgrains, Unpacked Paneer, Gur, Unbranded Natural Honey, Fresh Vegetables, Salt, Unbranded Atta, Unbranded Maida, Besan, Prasad, Palmyra Jaggery, Phool Bhari Jhadoo.
• 5% GST: Sugar, Tea, Packed Paneer, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (< Rs.500), Milk Food for Babies, Apparel (< Rs.1000).
• 12% GST: Butter, Ghee, Computers, Processed Food, Almonds, Mobiles, Fruit Juice, Preparations of Vegetables, Nuts, Fruits, or other parts, Packed Coconut Water.
• 18% GST: Hair Oil, Capital Goods, Toothpaste, Industrial Intermediaries, Soap, Ice-cream, Pasta, Toiletries, Corn Flakes, Soups, Computers, Printers.
• 28% GST: Small cars (+1% or 3% cess), High-end motorcycles (+15% cess), Consumer durables such as AC and fridge, Luxury & sin items like BMWs, cigarettes, aerated drinks (+15% cess).

HSN and SAC Codes: The Classification System

GST rates are linked to the Harmonized System of Nomenclature (HSN) code for goods and the Services Accounting Code (SAC) system for services. HSN codes standardize goods classification internationally, while SAC codes categorize services in India. The five GST slabs - NIL, 5%, 12%, 18%, and 28% - are determined based on these codes.

Conclusion: Navigating the GST Maze: As GST rates evolve, staying informed is essential for businesses and consumers. Regular updates from government sources or consultations with tax professionals ensure accurate, current information. This guide serves as a foundational resource, illuminating the dynamic GST rate landscape in India.