GST rates for goods and GST Compensation Cess announced

New Delhi: The 14th Goods and Services Tax (GST) Council Meeting, chaired by the Union Minister of Finance Shri Arun Jaitley, was held at Srinagar, Jammu and Kashmir yesterday. The fitment of rates of goods were discussed during the Council meeting. The Council has broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods. The Council has also broadly approved the rates of GST Compensation Cess to be levied on certain goods.

The information has been uploaded after the GST Council’s decision on the website of Central Board of Excise and Customs (CBEC) and is available at http://www.cbec.gov.in/. It will be subject to further vetting during which the lists may undergo some changes.

 

Chapter-wise-rate-wise-GST-schedule-18.05.2017

 

GST-compensation-cess-rates-18.05.2017

-Motorcycles of more than 350 cc engine capacity will attract a total of 31 per cent tax under the GST regime, same as the tax incidence on private aircraft and luxury yachts.

-All cars, buses, trucks and motorcycles including moped as well as personal aircraft and luxury yachts will attract a peak Goods and Services Tax (GST) of 28 per cent.

– All classes of cars and SUVs as well as motorcycles of more than 350 cc engine capacity will also attract an additional cess.

-The cess for motorcycles with more than 350 cc engine has been kept at 3 per cent, taking the total incidence of taxation to 31 per cent.This is the same as that for private aircraft and luxury yachts.

-Small cars of less than four meter length and with petrol engine of up to 1200 cc will attract 1 per cent cess on top of the peak rate.

-Small diesel cars with engine of less than 1500 cc will be charged 3 per cent cess.

-Mid-sized cars, SUVs and luxury cars will all attract 15 per cent cess, same as that for buses and vans that can carry more than 10 persons.

-Hybrid cars of more than 1500 cc engine would also attract 15 per cent cess.

-Aerated drinks and lemonade will attract 12 per cent cess on top of the peak rate while pan masala gutkha will be charged 204 per cent cess on top of the peak rate from July 1, the scheduled date for rollout of the GST.

-The Centre and states have agreed to impose cess on demerit and luxury goods under the GST regime, over and above the peak tax rate of 28 per cent.

-On tobacco, the cess will vary from 71-204 per cent.

-Scented zarda and filter khaini will attract 160 per cent cess, while for pan masala gutkha it would be 204 per cent.

-Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 per cent plus Rs 1,591 per 1,000 sticks.

-Non-filter cigarettes exceeding 65 mm but not exceeding 70 mm will attract cess of 5 per cent plus Rs 2,876, while that for filter cigarettes the levy is 5 per cent plus Rs 2,126 per thousand sticks.

-For cigars, a hefty levy of 21 per cent or Rs 4,170 per 1,000 sticks, whichever is higher, would be levied.

-Branded gutkha will be slapped with a cess of 72 per cent, while smoking mixtures for pipes and cigarettes will attract a levy 290 per cent.

-Besides, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.

– Rates on 1,211 items were finalised by the GST council with 81% facing a levy of up to 18%.

-There is no increase (in burden) on any commodity . On many commodities, there is a reduction in tax rates and taxon-tax will also go away , lowering the burden.

-The GST council has decided to lower tax incidence on items such as sugar, tea, coffee and mithai as well as consumer durables but opted to retain the burden on cars.

-In certain cases, such as hair oil, soaps and toothpaste, tax incidence has been reduced from around 28% to 18%. For coal, the reduction will be from 11.69% to 5%, helping lower the cost of power.

-The burden on those buying refrigerators or washing machines will come down from around 31-32% to 28%.

-Instant tea and coffee are expected to be in a separate bracket although tea and coffee will be in the 5% slab.

-Items that are part of the consumer price index will see a huge reduction according to Adhia.

-Consumer products like soaps, toothpaste and hair oil under 18% is good news and should see price drop for consumers. Similarly , several food items such as edible oil, tea, coffee sugar etc have been kept at 5%, with exemption for milk and foodgrains, which would also bring cheer to industry.