NEW UPDATES OF GST RATE

 GST RATE RATIONALISATION AFTER ITEM-WISE ANALYSIS

New Delhi: Rationalization of GST rates may be some time away, but assessment has begun in the background to assess possible and avoid inverted duty structure in several segments where the duty on the final product is lower than the tax on inputs.

While industry has demanded that rationalization, which will mean reworking of rtes. of various goods and services and also merging the four slabs on three, govt is no going to rush into any such exercise without a detailed analysis. A group of ministers had earlier looked at the issued but a decision on it has been pending for several months.

The broad assessment among industry players is that 12% and 18% slabs will be merged and a new 15-16% rate could emerge as the mid-rate, along with the 5% and 28% slab, given that several items will see an upward movement from the 12% slab, a political call needs to be taken. In fact, a few years ago some internal exercise had also been done in the finance ministry but covid had upset all the calculations. Whenever the rate changes take place, which could be several months away, govt wants to avoid a situation where it is accused of being anti-consumer, while also ensuring that the exercise is revenue neutral to the extent possible.

As a result, a very preliminary internal assessment is being done to see how a change in the rate of items in these segments would impact revenue flow, especially when the weighted average rate worked out to11.6% according to an analysis done by RBI a few years ago, against the proposed revenue neutral rate of 15-15.5 when GST was launched almost seven years ago.

But there is growing demand, and to an extent even realization within a section of govt, that the rates on several items, such as insurance or telecom services should not be 18%, but lower. Or, for that matter even cement should not be in the 28% bracket, given that it is used for construction, which has been a key demand of the industry. But before item-wise rates are discussion, finance ministers from the states and the Centre need to take a call to move ahead with rationalization.

GST Rates in India 2024 New updates

GST rates list is crucial for every Indian business and consumer to know. When the GST Council revises the Goods and Services Tax (GST) rates, it hits respective industries, trade bodies and end consumers, impacting the economy. Everyone tends to evaluate their position as a result of this Chage.

GST rates list highlights for the year 2024 all the recent Chages & updates of GST rates after the 54th GST Council meeting.

Meaning of GST Rates

Every business registered under GST must raise invoices with GST amounts charged on the supply value. These GST amounts are derived as a percentage value of taxable amounts. Such as percentage rate used is called the GST rate. For instance, GST of Rs. 1,200 charged on taxable value of Rs. 10,000 arrived by multiplying 12% GST rate with Rs. 10,000

Therefore, GST rate is a percentage rate of tax imposed on the sale of goods or services under the CGST, SGST and IGST Acts.

CGST GST rate and SGST GST rate would both behalf of IGST GST rate. In other words, the GST rate in CGST and SGST (For intrastate transactions) are approximately the same. Whereas the GST rate in the case of IGST (For interstate transactions) is approximately the sum total of CGST and SST rate

Types of GST Rates and GST Rate structure in India

The primary GST slabs for anu regular taxpayers are presently pegged at o%(nil-rated), 5%,12%,18% & 28 %. There is a new lesser-used GST rate such as 3% and 0.25%

Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5 or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 0.5% respectively (prior to 9th July 2024, it was 1%)

Further, the GST law levies cess in addition to the above GST rates on the sale of some items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles, rates widely varying from 1% to 204%

The GST rate structure for some of the commonly used consumable products is given in the below table. For more items, type in the item you wish to know the GST rate of by visiting our HSN code & GST rates finder

LIST OF GST ITEMS @ 0%

Milk, Kajal, Eggs, Educational Services, Curd, Lassi, Health Services, Children's Drawing & Colouring Books, Unpacked Foodgrains, Unbranded Atta/Maida, Unpacked Paneer, Gur, Beasn, Unbranded Natural Honey, Fresh Vegetables, Salt, Prasad, Palmyra Jaggery, Phool Bhari Jhadoo etc. 

LIST OF GST ITEMS @ 5%

Sugar, packed paneer, Tea, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (<Rs.500), Milk Food for Babies, Apparels (< Rs.1000) Fabric, Coir Mats, Coffee (except instant), Mishti/Mithai (Indian Sweets), Life-saving drugs, Agar Batti & Matting & Floor covering spices.

LIST OF GST ITEMS @ 12%

Nuts or other parts of Plants, including pickle Murabba, Fruit Juice, Preparations of Vegetables, Fruits, Chutney, Jam, Jelly, Packed Coconut Water, Umbrella, Butter, Ghee, Processed food, Mobiles & Almonds.

LIST OF GST ITEMS @ 18%

Hair Oil, Capital Goods, Toothpaste, industrial Intermediaries, Soap, ice-cream, Pasta, Toiletries, Corn, Flakes, Soups, Printers & Computers.

LIST OF GST ITEMS @ 28%

Small cars, High-end motorcycles, Consumer durables such an AC and fridge, Luxury & sin items like BMWs, Cigarettes and aerated drinks.

GST ON EXCISE DUTY

India is a socialist, secular, democratic republic and follows a federal structure that includes both the Central and State-level government. The government at both the levels share the responsibility to manage country's developmental needs. The primary source of income for both the government is tax. In other words, a tax is a contribution.

In India, the power to tax vest in both the Central and State government. The power to levy and collect divides the power between the Cental and the State Governments.

Prior to the launch of unified tax system as GST, Indian indirect tax regime was highly fragmented. Centre and States were separately taxing goods and services. The Centre was empowered to tax goods at the production or manufacturing stage. The Centre was also empowered to levy on services. This structure of taxation suffered from various shortcomings.

There were multiple taxes like central excise duty, Service tax, VAT, CST, purchase tax, entertainment tax etc. additionally, there was multiplicity of rate, laws and procedures. This caused heavy compliance burden on the taxpayer's serious problem. For example, VAT was levied on a value that included central excise duty.

Input tax credit chain broke as goods moved from one State to another, resulting in hidden cost for the business. There were tax Naksa at every inter-State border, creating bottlenecks in inter-State transport of goods. Every State was effectively a distinct market for the industry as well as consumer. Industry's choice of locating Factores or warehouse was heavily influenced by the prevailing tax regime rather than pure business considerations, making the industry uncompetitive.

Some of the primary problems with the pre-GST regime were:

(A) Taxation at manufacturing level

Central excise duty was levied on goods manufactured or produced, limiting the taxable event at manufacturing point leading to a narrow base and posed a severe impediment to an efficient neutral application of tax.

(B) Exclusion of Services

The states were precluded from taxing services. This arrangement posed difficulties in taxation of goods supplied as part of a composite works contract involving a supply of both goods and services, and under leasing contracts, which entail a transfer of the right to use foods without any transfer of their ownership

(c) Interpretational Issues

Problems also arose in respect of interpretation of various provisions and determining the category of the commodities. To decide the nature of transaction that is whether and activity was sale or works contract; sale of service was not free from doubt.

(d) Tax Cascading

Tax cascading means a tax-on-tax. Tax cascading occurred under both the Centre and the State taxes. The most significant contributing factor to tax cascading was the partial coverage by the Central and the state tax. Under the erstwhile system, tax payable at the time of sale was levied on a value which already included the tax paid at the time of manufacture that is central excise duty. Furthermore, there were certain taxes for which input credit tax was not admissible which thus formed a part of the cost of the goods. Moreover, input tax credit in respect of CST on inter-state sale of goods was not admissible. All these taxes become a part of cost of goods thereby leading to cascading.

(e) Local sale v/s central Sale

Fixing the situs of the sale transaction that is whether the sale takes place in one State, or another was a major confect as it affects the revenue of the State. CST that is Central Sales Tax was a tax levied on inter-State sale of goods by the Central government but the power to collect and retain the CST was vested with the State government.

(f) Lack of uniformity in VAT provisions and rates

The VAT structure lacked uniformity across the States which was not only confined to the tax rate but also extended to procedures, definitions, computations and exemptions.

(g) Complexity in determining the nature of transaction

The advancement in information technology had blurred the distinction between goods and services. In the present scenario, goods, services and other supplies are being packaged through as composite bundles and offered for sale to the consumers. Neither the Central nor the state government could levy tax on such bundles in a seamless manner.

(h) Complexity

In spite of the improvements made in the tax design and administration over the years, the tax regime remained complex. They were subject to disputes and court challenges and the process for resolution of disputes and court challenges and the process for resolution of disputes was slow and expensive. At the same time, the systems suffered from substantial compliance gaps, except in the highly organized sectors of the economy.

More than 17 taxes including both of the Centre and the States i.e. Central Excise duty, Additional duties of excises, Excise duty levied under Medicinal & Toiletries Preparation Act, Additional duties of customs, service Tax, State VAT or Sale Tax, Central Sales Tax, Purchase Tax, entertainment Tax, Luxury Tax, Entry Tax, Taxes on lottery, betting & gambling and other surcharges & cesses were subsumed into a single Goods and Services Tax (GST). Constitution was further amended to provide concurrent powers to both the Centre & the States to levy GST. The objective was to mitigate the ill effects of cascading or double taxation in a major way and pave the way for a common national market.

The introduction of the Goods and Services Tax (GST) was a significant step towards making India economically competitive by ushering in higher transparency costs and improved compliance. It was the much-needed transformation in the field of indirect tax Systeme of the country. It was launched with the object to streamline taxation and reduce compliance burden.

Since its launch, the country has witnessed digitalization in tax compliance and improved supply chain efficiencies. It is a tax regime founded on a technology-based monitoring system with e- business processes like, e-Returns, e-Invoice, e-Way bills, etc. It was also vital to recognize the effectiveness of the Centre- State collaboration under the auspices of the GST council which has ensured policy implementation uniformly across States. Despite the scale of the COVD-19 crisis, the government and the industry was agile in adjusting to the "new normal "and restarting economic activity GST has made Indian products competitive in the domestic and international markets owing to the full neutralization of input taxes across the value chain of production and distribution.

In the words of Hon'ble Prime Minister Shri Narendra Modi, the Goods and Services Tax (GST) is " a path-breaking legislation for new India"

This revolutionary taxation system was rolled out on the midnight of 01 July 2017 in a ceremony held in the Central Hall of Parliament's is not Nerely a tax reform but a milestone in realizing Sardar Vallabhbhai Patel's dream of building.                           

 

GST under Export

 Export of goods and refund under GST

1 Introduction

Government has always focused on making industry friendly polices when it comes to exports since the consideration is received in foreign currency. Under per-GST regime, excisable goods were allowed to be exported without payment of duty in terms of rule 19 of the Central Excise Rules, 2002. along similar lines, but without any binding precedent, section 16 is placed in Integrated Goods and Service Tax Act, 2017 (IGST Act). This article summarizes authors learning from a deep dive into various aspects involved in neutralizing GST incidence on exports and lays out some concerns for reader's attention.

Procedure for making zero-rated supply

Eeporter who intends to export goods without payment of IGST, is required to furnish LUT. LUT has to be applied on common portal in Form RFD-II and the same will be valid for the entire Financial Year.

LUT is to be furnished prior to undertaking export of goods. However, Central Board of Indirect Taxes (CBIC) vide circular no. 125/44/2019 dated November 18, 2019, has clarified that the substantive benefit of zero-rated supply may not be denied where the exporter has delayed in furnishing LUT. Accordingly, LUT may be admitted on ex post facto basis, taking into account, facts and circumstances of each case.

Exporter is required to issue a tax invoice for export of goods and the particulars "Supply meant for export under bond or Letter of Undertaking without payment of integrated tax" is required to be mentioned on the tax invoice. Do note that overseas buyer does requires an export Invoice denominated in agreed foreign currency and not tax invoice denominated in Indian Rupees.

In addition to the invoice, exporter is required to file shipping bill in Form SB-I. Shipping bill is required to be issued in four copies.

It is pertinent to note that exporter is required to export the goods within 3 months from the date of tax invoice. In case the goods are not exported within such time, Rules 96A (1) of the Central Goods and Service Tax Rules, 2017 (CGST Rules) provides that tax along with the interest at 18 percent is required to be paid withing 15 days from the end of this 3 months period or such further period as may be allowed by the commissioner.

Export of goods under LUT

Section 54 of the CGST Act read with Rule 96 of the CGST Rules provides the mechanism for claiming refund on account of export of goods. As discussed earlier, exporter has an option for export goods under LUT or they may export goods on payment of IGST. Accordingly, the refund provision for each scenario are as under

Certain issues in amendments in the refund formula:

* It is pertinent to note that the restriction place in Rule 89 (4) (c) of the CGST Rules on the value of export of goods maximum to 1.5 times the value of like goods sold domestically s inserted vide Notification No. 16/2020-Central Tax dated March 23, 2020. There were no such restriction placed earlier. To expect that export price greater than 50 percent over domestic price is unwarranted restraint on export benefits that is described and earned by exporters.

* It is deeply concerning if the said restriction applies to refund claim filed after March 2020 which are pertains to past period i.e. before March 2020. 

* It is worthwhile to highlight that the said sub rule has been 'substituted' vide Notification No 16/2020-Central Tax dated March 23, 2020. In other words, the old rule has been replaced with new rule. Accordingly, one needs to interpret whether the said substitution can extent this restriction to rebates yet to be filed for past exports and thereby be retrospective.

* The calculation of 1.5 times the value of export of goods is applicable in the numerator only. In numerator the actual export value of goods is required to be added to the total adjusted turnover. Hence, this would further reduce the net refund amount to the exporter and is clearly a retrograde step.

Zero-rated supply

Supplies specified in section 16 of IGST Act are called 'zero-rated suppliers' notwithstanding the generally applicable rate of GST. Zero-rated supply is a moniker for supplies enlisted in section 16 of IGST Act:

Export of goods is defined under Section 2 (5) of the IGST Act which states that "export of goods" with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India. Expert of goods would be treated as inter-state supply in accordance with Section 7(5) (a) of the IGST Act. Under section 16 of the IGST Act, following are treated as zero-rated supplies:

(a) Supply of goods or services to /special Economic Zone developer or a Special Economic Zone Unit

(b) Export of goods or services or both

Zero-rated supply does not mean that the goods or services or services are nil rated or are subject to 0 percent tax. In respect of such zero-rated supplies, section 16(3) provides options to neutralize the incidence of GST on exports, namely, either exporter is free to export goods on payment of IGST (rebate option) or to export under Letter of Undertaking ('LUT') without payment of IGST to claim refund of utilized input tax credits (refund option).

Export of goods under LUT

Section 54(3) (i) of the CGST Act provides that a registered person may claim refund of unutilized input tax credit (ITC) for zero- rated supply made without payment of tax. The refund application may be made for each tax period. The said section comes with some of the restriction which are enumerated below.

(i) Provided further that no refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty

(ii) Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both of drawback in respect of central tax and claims refund of the integrated tax paid on such supplies. Accordingly, if the goods which are exported as subject to export duty or any drawback is to be claimed on such exerts, refund of utilized ITC may not be available

FURTHER, it is pertinent to note that, refund of utilized ITC has to be computed as per the method prescribe under Rules 89 (4) of the CGST Rules. The same is reproduced below.

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC/Adjusted Total Turnover

Where, -

(A) "Refund amount" means the maximum refund that is admissible.

(B) "Net ITC" means input tax credit availed on imputes and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub- rules (4A) or (4B) or both.

" Turnover of zero-rated supply of goods" means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less, other sub-rules (4A) or (4B) or both.

> Export of goods on payment of IGST

Any person availing option to export goods on payment of IGST is not required to file separate application for refund. Folling procedure is to be complied with for export of goods on payment of IGST:

(a) A registered person is required to file shipping bill showing prescribed details.

(b) Details or goods exported as to be reported in Table 6A of Form GSTR - 1

(c) The amount disclosed inGSTR-3B should not be less than the same shown in GSTR -1

Upon matching the above details on the GSTIN and ICEGATE portal, the refund of IGST paid would automatically be get credited to the bank account of the exporter. Accordingly, a registered person is required to take utmost care at the time of uploading exports details at the time of filling GST returns.

GST Rate on services

  GST@ 0% ON SERVICES

(1) Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products or agricultural produce.

(2) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products or agricultural produce by way of -----------------------

(a) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.

(b) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and make it only marketable for the primary market. Renting or leasing of agro machinery or vacant land with or without a structure incidental to its use

(c) loading, unloading, packing, storage or warehousing of agricultural produce.

(d) Agricultural extension services.

(3) Services by a foreign diplomatic mission located in India 

(4) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.

(5) Services provided by the National Centre for Cold Chain development under the Ministry of Agriculture, Cooperation and Farmer's welfare by way of cold chain knowledge dissemination

(6) Services by a foreign diplomatic mission located in India

(7) Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Central Government, State Government, Union territory or local authority before the 1st of April 2016; Provided that the exemption shall apply only to tax payable on one time charge payable. In cull upfront or in installments, for assignment of right to use such natural resource.

(8) Services provided by the Central Government, state Government, Union territory by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties relation to import export cargo on payment of Merchan Overtime charges.

(9) Taxable services provided or to be provided, by a Technology Business Incubator or a science and Technology Entrepreneurship Park recognized by; the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognized by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India.

(10) Services by an organizer to any person in respect of a business exhibition held outside India

(11) Services by way of collecting or providing news by an independent journalist, press Trust of India or United News of India

(12) Services provided by the Goods and Services Tax Network to the Central Government or State Governments or Union territories for implementation of Goods and Services Tax

(13) Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India

(14) Services of public libraries by way of lending of books, publications or any other knowledge- enhance content or material.

(15) Services by way of sponsorship of sporting events organized - 

(a) by a national sports federation, or its affiliated federations, where the participating teams or individual represent any district, State, zone or Country.

(b) by the Central Civil Services Cultural and Sports Board.

(c)  as part of national games, by the Indian Olympic Association; or under the panchayat Yuva Kreed Aur keel Abhiyaan scheme.

(d) by association of Indian Universities, Inter- University Sports Board, Schol games Federation of India, All India Sports Council for the Deaf, Paralympic committee of India or Special Olympics Bharat.

(16) Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use natural resources to an individual farmer for cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products.

(17) Services by a specified organization in respect of a religious pilgrimage facilitated by the Ministry of External Affairs, the Government of India, under bilateral arrangement.

(18) Services provided by the Central Government, State Government, Union Territory or local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate.

(19) Services provided by the Central Government, State Government, Union territory or local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate.

(19) Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmers, except Executive Development program: -

(a) two-year full time post Graduate Programs in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of common Admission Test (CAT) conducted by the Indian Institute of Management.

(b) five-year integrated programmer in Management.

(c) fellow program me in Management.

(20) Services provided to a recognized sports body by -------

(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body'

(b) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body.

(21) Services provided - (a) by an educational institution to its students, faculty and staff.

(b) to an educational institution, by way of (1) transportation of students, faculty and staff. (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory. (iii) security or cleaning or house- keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by such institution; up to higher secondary:

Provided that mothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

(22) Services by an artist by way of a performance in folk or classical art forms of MUSIC, DANCE, & THEATRE if the consideration charged for such performance is not more than one lakh and fifty thousand rupees:

Provided that the exemption shall not apply to service provided by such artist as a brand ambassador.

Services by way of - (a) health care services by a clinical establishment, an authorized medical practitioner or paramedics. (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above

Service by an unincorporated today or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution (1) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in housing society or a residential complex.

Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo.

Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets.

Services provided by operators of the common bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of bio- medical waste or the processes incidental thereto.

Services by the Central Government or State Government or any local authority by way of any activity in relation to a function entrusted to a panchayat under article 243G of the Constitution is neither a supply of goods not a supply of service

Services provided to a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posed therein, is exempt by way of refund.

Services by way of training or coaching in recreational activities relating to: (1) sport by charitable entities registered under section 12AA of the Income -tax Act. & arts or culture

Services by way of right to admission to 

(a) circus, dance, or theatrical performance including drama or ballet.

(b) award function, concert,pageant,musical performance or any sporting event other than a recognized sporting event.

(c) recognized sporting event, where the consideration for admission is not more than Ts 250 per person as referred to in (a), (b) and (c) above.

GST on Services @ 5% with ITC of input services

(1) Transport of goods in a vessel

(2) Transport of passengers by rail in first class or air-conditioned coaches

(3) Transport of passengers by air in economy class

(4) Leasing of aircrafts by a scheduled airlines for scheduled operations 

(5) Transport of passengers, by air, embarking from or terminating in a Regional Connectivity Scheme Airport

(6) Transport of goods in a vessel

(7) Services provided by foreman of chit fund in relation to chit

GST on Services @ 5% No ITC 

(1) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use)

(2) Renting off motor cab where the cost of fuel is included in the consideration charged from the services recipient

(3) Transport of passenger, by---- (a) air-conditioned contract carriage other than motor cab;(b) radio taxi (c) air-conditioned stage carriage.

(4) Supply of tour operators' services

GST on Services @ 5% 

(1) Selling of space for advertisement in print media

(2) Services by way of job work in relation to -------------------------------------

(a) Cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter of HSN.

(b) Processing of hides, skins and leather falling under Chapter 41 of HSN

(c) Printing or newspapers.

(d) Textile yarns (other than of man-made fibers) and textile fabrics.

(e) printing of books (including Braille books), journals and periodicals.

GST on Services @ 12% 

(a) Supply of food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having license to serve liquor

(b) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods tother than Information Technology software.

(c) Accommodation in hotels,inns,guest house, clubs, composites or other commercial places meant for residential or loading purposes having room tariff Rs. 1000 and above but less than Rs. 2500 per room per day

(d) Transport of passengers by air in other than economy class.

(e) Transport of goods in containers by rail by any person other than Indian Railways.

GST on Services @ 12% with ITC of input services

(a) Services provided by foreman of chit fund in relation to chit

GST on Services @ 12% with no refund of accumulated ITC

(a) Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly (the value of land is deemed to be one-third of the total amount charged for such supplies)

GST on Services @ 18% 

(a) Bundled service by way of supply of foods or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, Andal, shamiana or any other place, specially arranged for organizing a function) together with renting or such premises

(b) Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.

(c) Supply of Food/drinks in restaurant having license to serve liquor

(d) supply of food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year

(e) Supply of Food/drinks in outdoor catering

(f) Accommodation in hotels, inns, guest houses, clubs, composites or other commercial places meant for residential or loading purposes where room tariff or Rs 2500/-and above but less than Rs 7500 per room day

(g) Services by way of admission or access to circus, India classical dance including folk dance, theatrical performance, drama

(h) Composite supply of Works contracts as defined in clause 119 of section 2 of CGST Act

(I) All other services not specified elsewhere

GST on Services @ 28% 

(a) Services provided by a race club by way of totalizator or a license to book maker in such club

(b) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, racecourse, ballet, any sporting event such as India premier League and the like

(c) Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or loading purposes, where room rent is Rs 8000/- and above per day per room

(d) Gambling

GST

NIL RATE OF GST ON SERVICES

Service by way of giving on hire

(1) to a goods transport agency, a means of transportation of goods.

(2) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers.

Services by way of transportation by rai or a vessel from one place in India to another of the following goods:

(1) relief materials meant for victims of natural or man- made disasters, calamities, accidents or mishap.

(2) defense or military equipment's.

(3) organic manure.

(4) railway equipment's or materials.

(5) agricultural produce.

(6) milk, salt and good grain including flours, pulses and rice

Services provided by a goods transport agency, by way of transport in a goods carriage of

(1) agricultural produce.

(2) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand live hundred rupees.

(3) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty.

(4) milk, salt and food grain including flour, pulses and rice.

(5)  organic manure, newspaper or magazines registered with the Registrar of Newspapers.

(6) relief materials meant for victims of natural or man- made disasters, calamities, accidents or mishap; or

(7) defense or military equipment's

Services by the Employees' State Insurance corporation to persons governed under the Employee's State Insurance Act, 1948 (34 of 1948)

Services by way of

(1) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services).

(2) inter se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers

(3) Service by way of access to a road or a bridge on payment of toll charges 

(4) Services by way of loading, unloading, packing, storage or warehousing of rice,

(5) Transmission or distribution of electricity by an electricity transmission or distribution utility.

(6) Services by the Reserve Bank of India 

Services provided by the Insurance Regulatory and the Development Authority of India to insurers under the Insurance Regulatory and the Development authority of India Act, 1999 (41 of 1999)

Services provided by the Employees provident fund organization to the persons government under the Employees provident funds and the Miscellaneous Provisions Act 1952 (19 of 1952) 

Services of life insurance business provided by way of annuity under the National pension system regulated by the Pension Fund Regulatory and Develpment Authority of India under the pension Fund Regulatory and Development authority Act, 2013 (23 of 2013)

Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds to members of the Army, Navy and Air force, respectively, under the Group Insurance Schemes of the Central Government

Services of general insurance business provided under following schemes -

(a)  Rastriya Swasthika Bima Yojana.

(b) Jan Arogya Bima Policy, Central sector scheme on Cattle Insurance, Pradhan Mantri Suraksha Bima Yojna, National Agricultural Insurance Scheme (Rastriya Krishi Bima Yojana).

(c) Niramaya Health Insurance Scheme implemented by the Trust constituted under the provisions of the National Trust for the welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).

(d) Pilot Scheme on seed Crop Insurance, Universal Health Insurance scheme & Coconut palm Insurance Scheme.

(e) Hut Insurance Scheme, Cattle Insurance under Sanjayanthi Gram Saroz gar Yojna (earlier known as Integrated Rural Development Program).

(f) Scheme for Insurance of Tribals, Janata Personal Accident Policy and Gramin Accident Policy, Group personal accident Policy for Self- Employed Women.

(g) Agricultural Plumpest and Failed well Insurance, Premia collected on export credit insurance.

(h) Weather Based crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture.

Services provided by an incubates up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely: -

(a) the total turnover had not exceeded fifty lakh rupees during the preceding financial year and a period of three years has not elapsed from the date of entering into an agreement as an incubate,

Services provided by-(a) an arbitral tribunal to (1) any person other than a business entity; or (2) a business entry with and aggregate turnover up to twenty lakh rupees (ten lakh rupees int the case of special category states) in the preceding financial year.

(b) a partnership firm of advocates or an Individual as an advocate other than a senior advocate, by way of legal services to (1) an advocate or partnership firm of advocates providing legal services. (2) any person other than business entity' or (3) a business entry with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the case of special category states) in the preceding financial year.

(c) a senior advocate by way of legal services to - (1) any person other than a business entity; or (2) a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the case of special category states) in the preceding financial year.

Services by a veterinary clinic in relation to health care of animals or birds.

Services provided by the Central Government, state Government, Union territory or local authority by way of - it

(a) registration required under any law for the time being in force.

(b) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license, required under any law for the time being in force.

Services by an acquiring bank, to any person in relation to settlement of an amount up to two thousand rupees in single transaction transacted through credit card, debit card, charge card or other payment card service.

Explanation - For the purposes of this entry, "acquiring bank" means any banking company, financial institution including non- banking financial company or any other person, who makes the payment to any person who accepts such card.

Services provided by the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to reflate, the securities market.

Services of life insurance business provided under following schemes

(a) Janashree Bima Yojana

(b) Aam Aadmi Bima Yojana

(C) Life micro-insurance product as approved by the insurance Regulatory and Development Authority, have maximum amount of cover of fifty thousand rupees.

(d) Varshitha Pension Bima Yojana.

(e) Pradhan Mantri Jeevan Jyoti Bima Yojana:

(f) Pradhan Mantri Jan Dhan Yogana

(g) Pradhan Mantri Vaya Vandan Yojana

Services by the following persons in respective capacities -

(a) Business facilitator or a business correspondent to an insurance company in a rural area.

(b) Business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch:

(c) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in entry (b)

Services by way of collection of contribution under the Atal Pension Yojana

Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves.

Services by way of collection of contribution under any pension scheme of the state Governments

Services provided to the Central Government, state Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, state Government Union territory.

One-time upfront amount (called as premiun,salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development corporations or undertaking to industrial units.

Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the India Railways Finance corporation to Indian Railways.

Services provided by the Central Government, state Government, Union Territory or local authority by way of allowing a business entity to operate as a telecom service provider or use radio frequency spectrum during the period prior to the 1st of April 2016 on payment of License fee or spectrum user charges, as the case may be.

GST RATE ON SERVICES

 NIL RATE OF GST ON SERVICES

(1) Services by the Central Government, State Government, Union territory or local authority excluding the following services ----------

(a) services by the Department of posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory.

(b) services in relation to an aircraft or a vessel, inside of outside the precincts of a port or an a pirport;

(c) transport of goods or passenger; or

(d) any services, other than services covered under entries (a) to (c) above, provided to business entities.

(2) Services by Central Government, State Government, Union territory, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution.

(3) Services provided by Central Government, State Government, Union territory or a local authority where the consideration for such services does not exceed five thousand rupees:

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, state Government, Union territory:

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport.

(iii) transport of goods or passengers:

Provided further that in case where continuous supply of services, as defined in sub-section (33) of section 2 of the Central Goods and Services Tax Act, 2017 is provided by the Central Government State Government, Union territory or a local authority, the exemption shall apply only where the consideration charged for such service does not exceed five thousand rupees in a financial year.

(4) Transport of passengers, with or without accompanied are following ----

> Tripura or at Bagdogra located in West Bengal, Meghalaya, Mizoram, Nagaland, Sikkim, Manipur, air embarking from or terminating in an airport located in the state of Arunachal Prades & Assam.

> Stage carriage other than air-conditioned stage carriage.

> Non- airconditioned contract carriage other than radio taxi, for transportation of passenger, excluding tourism, conducted tour, charter or hire; or 

(5) Services by way of transportation of goods (by road except these services of 

> a goods Transporation agency, a courier agency. & by inland waterways.

> Services by way of transportation of goods by an aircraft from a place outside India up to the customs station of clearance in India.

(6) Services by a government authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.

(7) Services provided by the Central Government, State Government, Union territory to another Central Government, State Government, Union territory or local authority:

Provided that nothing contained in this entry shall apply to services -

(i) by the Department of Posts by way of speed post, express parcel post, lie insurance, and agency services provided to a person other than the Central Government, state Government, union territory.

(ii) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport.

(iii) of transport of goods or passengers.

(8) Services provided by way of pure Laboure contracts of construction, erection, commissioning, installation, completion, fitting out repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban)Mission or Pradhan Mantri Awas Yojana

(9) Services by way of renting of residential dwelling for use as residence.

(10) Services provided to the Central Government, by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding:

Provided that nothing contained in this entry shall apply on or after the expiry of a period of one year from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation.

(11) Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a government authority by any activity in relation to any function entrusted to a Municipality under article 243 W of the Constitution.

(12) Services by an entity registered under section 12AA of the Income - Tax Act, 1961 (43 of 1961) by way of charitable activities. & Services by way of transfer of a going concern, as a whole or an independent part thereof.

(13) Services received from a provider of service located in a non- taxable territory by ------

(i) a person located in anon-taxable territory:

(ii) an entity registered under section 12AA of the Income - tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or 

(iii) the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any oterh business or profession;

Provided that the exemption shall  non apply to-------

> services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India received by persons specified in the entry.

(14) Service of transpiration of passengers, with or without accompanied belongings by

(a) public transport, other than predominantly for tourism purpose, in a vessel between places located in India' and metered cabs or auto rickshaw (including e-rickshaws).

(b) railways in a class other than - first class; or an air-conditioned coach.

(15)  Services by way of pure Laboure contracts of construction, erection, commissioning, or installation f original works pertaining to a single residential unit otherwise than as a part of a residential complex

(16) Services by a person by way of - 

(a) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income - tax Act, 1961 (here in after referred to as the Income tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income - tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income- tax Act:-

Provided that nothing contained in entry (b) of this exemption shall apply to, -

(a) renting of rooms where charges are one thousand rupees or more per day.

(b) renting of premises, community halls, Kalyan mandapam or open pare, and the like where charges are ten thousand rupees or more per day.

(c) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or ore per month.

(16) Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, have declared tariff of a unit of accommodation below one thousand rupees per day or equivalent.

(17) Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year

Explanation. - For the purposes of this entry, it is hereby clarified that the provision of this entry shall not be applicable to -------

(a) Services-    > by the Department of posts by way of speed post, express parcel post, life insurance, and agency services provided toa person other than the Central Government, State Government, Union territory.

(b) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an pirport;

(c) of transport of goods or passengers; and services by way of renting of immovable property.