What Goods And Services Are Covered Under GST?

Overview of Goods and Services Tax (GST) in India

Goods Covered Under GST

1. Agricultural Products:

Grains, cereals, and pulses, Fruits and vegetables, Tea, coffee, and spices

2. Manufactured Goods:

Textiles and apparel, Footwear, Electronics and appliances, Automobiles and parts, Machinery and equipment

3. Processed Food Items:

Packaged food products, Sweets and confectioneries, Beverages (excluding alcohol)

4. Household Items:

Furniture, Home Decor, Cleaning supplies

5. Construction Materials:

Cement, Bricks, Tiles, Steel and other metals

Services Covered Under GST

1. Professional Services:

Legal services, Consultancy services, Accounting services

2. Healthcare Services:

Medical treatment (with certain exceptions), Diagnostic services

3. Educational Services:

Training and coaching centers, Online education services

4. Transportation Services:

Rail and road transport, Air travel, Freight and logistics

5. Financial Services:

Banking and insurance services, Mutual funds, and portfolio management

6. Entertainment and Leisure:

Cinemas and amusement parks, Hotel and accommodation services, Event management

Exemptions and Exceptions

Some goods and services are either exempt from GST or fall under the zero-rated category. Here are a few examples:

1. Goods Exempt from GST:

Fresh fruits and vegetables, Unprocessed cereals and pulses, Milk and dairy products (unprocessed), Books and newspapers

2. Services Exempt from GST:

Healthcare services provided by hospitals and clinics, Educational services provided by recognized institutions, Services by the Reserve Bank of India (RBI), and Services by the government (excluding certain specified services)

3. Zero-rated Supplies:

Export of goods and services, Supplies to Special Economic Zones (SEZs)

Special Cases

1. Petroleum Products and Alcohol:

Petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel are currently outside the purview of GST and are taxed separately by the central and state governments.

Alcoholic liquor for human consumption is also excluded from GST and is taxed by state governments.

2. Real Estate:

The sale of land and buildings (except under-construction properties) is exempt from GST.

However, GST is applicable to construction services provided by developers and contractors.