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GST and GST Bill Rates

GST is an indirect tax system imposed by the Government of India. It consists of all the indirect taxes such as VAT, Service tax, etc. It came in to effect in 2017.

& There are three types of GST:

  1. Central GST or CGST
  2. State GST or SGST
  3. Integrated GST or IGST
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& CGST: In CGST, the tax is levied by the Central Government of India, and it replaced the service tax, SAD(Special Additional Duty), ADE( Additional Duties of Excise). It is applicable for the supplies of goods and services in intra-state, and the revenue collected through CGST goes to the government.

& SGST: In SGST, the tax is levied by the State Government, and it replaced the sales tax, VAT, entertainment tax, purchase tax. It applies to intra-state goods supplies, and the revenue goes to the state government. The seller collects the CGST and SGST from the buyer.

& Example of CGST and SGST: Let's suppose Dinesh is a dealer of baby products who sold goods of Rs 10,000 to some company in the same state. In this case, the GST will be 18% which includes 9% CGST and 9% SGST which means that dealer collected 1800, 900 will go to central government, and 900 will go the state government.

& IGST: The IGST act governs IGST and applies on the inter-state supply of goods and services along with imported as well as exported goods in and from India. The state and central government levy it together, but the central government used to collects the tax.As per the latest highlight of 25th GST council, the collections of worth Rs 35,000 crores from Integrated GST will be divided among the central and state government.

& & GST Rates 2017:&

The GST Council in its 23rd meeting on November 10, 2017, suggested changes in the GST. & The council took the decision to keep the highest 28% tax on luxury and sinful items; as a result, 178 goods have been removed from 28% category and shifted to the 18% bracket. GST on many things has also been decreased.

& The government has categorised & the items in five major brackets - 0%, 5%, 12%, 18% and 28%.

Latest update on GST rates 2018:

On 18th January, 2018 the 25th GST council held in which rates of 29 goods and 53 services were decreased to lower slabs

& Revised GST Rates with effect from January,2018:&

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&

Good/Service

Current GST Rates

Revised GST Rates

Diamonds & precious stones

3%

0.25%

Old and used motor vehicles [medium and large cars and SUVs,Services & of admission to theme parks, water parks, Public transport buses running on biofuel, & etc.

28%

18%

LPG for household domestic consumers, satellites and payloads, Tailoring services, raw materials needed for launch vehicles, etc.

18%

5%

Sugar boiled confectionery, Drinking water packed in 20 litre bottles, Biodiesel, Drip irrigation system Mechanical sprayer, building joinery, Transportation crude petroleum and products, Metro and monorail projects, Common effluent treatment plants. Services for treatment of effluents, for drilling services in respect of the said goods, etc.

18%

12%

Old and used motor vehicles

28%

12%

Articles of straw, esparto or other plating materials, Velvet fabric, etc.

12%

5%

Under section 9 (5) of GST Act Small housekeeping service providers

nil

5%

Actionable claim in the form of chance to win in betting and gambling including horse racing

nil

28%

Rice bran(other than de-oiled rice bran)

0%

5%

Cigarette filter rods

12%

18%

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Latest GST News 2018:

In an attempt to widen tax base and rates, the GST council is working for streamlining rates of GST. Currently GST is divided into four slabs-5%,12%,18% and 28%

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