What Are The Different GST Rates Applicable To Various Goods And Services?

Understanding GST Rates in India

GST Rate Structure

1. 0% (Exempted Goods and Services):

Fresh fruits and vegetables, Unprocessed cereals and pulses, Milk, buttermilk, and curd, Educational services provided by recognized institutions, Healthcare services provided by hospitals and clinics, Books and newspapers

2. 5%:

Essential food items like packaged grains, cereals, and pulses, Edible oils and sugar, Life-saving drugs, Railways, air travel (economy class), Transportation services, Small restaurants

3. 12%:

Processed food items, Fruit juices, Butter, ghee, and cheese, Ayurvedic and homeopathic medicines, Business class air travel, State-run lotteries

4. 18%:

Consumer goods such as soaps, toothpaste, and hair oil, Industrial intermediaries, Electrical appliances and equipment, Computers and accessories, Telecommunication services, Financial services

5. 28%:

Luxury items and sin goods, Automobiles and motorcycles, Air conditioners and refrigerators, High-end electronic goods, Pan masala and tobacco products, Hotel accommodation (room rates above ?7,500 per night)

Additional Considerations

1. Cess on Certain Goods:

Apart from the GST rates mentioned above, certain goods attract an additional cess. 

For example, luxury cars, aerated drinks, and tobacco products are subject to a compensation cess to fund states for any revenue loss due to GST implementation.

2. Special Rates for Gold and Precious Metals:

Gold, silver, and processed diamonds are taxed at a special rate of 3%.

Unpolished and uncut precious stones are taxed at 0.25%.