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GST Out. Know 18% – 28% tax Items Lists

The Goods and Services Tax(GST), considered to be one of the most revolutionary tax reform will be rolled out by Prime Minister Narendra Modi at a midnight session. With this, the idea of ‘One nation, one tax’ will be realized and the idea which was formulated in the form of a bill by then Finance Minister under the Congress led-UPA regime and now President of India Pranab Mukherjee will come to life.

But this new tax reform, which is reportedly aimed at benefiting all Indians, can be pretty confusing and given the various technical terms and jargon which are being thrown at the consumers and sellers, understanding the concept of GST can be quite difficult. In this regard, following are the various items which will fall in the 18% slab under the GST.

List of items in the 18% slab

The list of items in the 18% slab will be divided into two sections. The first section is the goods section and will name the various items that will be in this slab. However, the second section shall include the names of the various services that will be affected and has been put in the 18% slab.

Goods

The products under the 18% slab are:

  • Trademark
  • Bidi Patta
  • Goodwill
  • Software
  • Biscuits (all categories)
  • flavored refined sugar
  • pasta
  • pastries and cakes
  • preserved vegetables
  • jams and sauces
  • soups
  • ice cream
  • instant food mixes
  • mineral water
  • tissues
  • envelopes
  • tampons
  • notebooks
  • steel products
  • printed circuits
  • camera
  • speakers and monitors
  • Kajal pencil sticks
  • Headgear and parts thereof,
  • Aluminum foil,
  • Weighing Machinery [other than electric or electronic weighing machinery],
  • Printers [other than multifunction printers],
  • Electrical Transformer,
  • CCTV,
  • Optical Fiber,
  • Bamboo furniture
  • Swimming pools and padding pools
  • Curry paste;
  • mayonnaise
  • salad dressings;
  • mixed condiments and
  • mixed seasonings
  • Footwear costing more than RS. 500

Now coming to the Services part, the top service to be taxed in accordance with the 18 percent slab are:

  • AC hotels that serve alcohol
  • telecom services
  • IT services
  • branded garments
  • financial services

Notably, Rooms with tariff between Rs 2,500 and Rs 7,500 will attract 18 percent of GST, while restaurants in Five-star hotels will also be charged according to the 18 percent slab.

Here is the complete list of items which would be charged at 28% under the Goods and Services Tax (GST) mechanism.

Nearly 81% of items under the Goods and Services Tax (GST) regime would be charged at the rate of 18% or below. The remaining items would attract a tax up to 28%. According to Finance Minister Arun Jaitley, the products placed under the 28% tax slab would not adversely impact the lower or middle class. He further added that the existing levies have been kept in mind before placing a product in the 28% slab, considered to be the luxury tax category.

In the GST Council meeting on June 11, a number of items listed under 28% tax slab were brought down to the lower category of 18%. Prominent among such items include computer printers and cinema tickets, priced below Rs 100. The tax rate of 28% on hotels charging Rs 2,500-5,000 per night was lowered to 18%.

School bags, computer monitors, data projectors, car tyres and sugar-based products will continue to attract a GST of 28%, despite appeals being made by the industry delegations.

List of items in 28% slab of Goods and Services Tax (GST):

  • Sugar and sugar confectionery
  • Cocoa and cocoa preparations
  • Preparations of cereals, flour, starch or milk; pastrycooks’ products
  • Miscellaneous edible preparations
  • Pan masala
  • Beverages, spirit, and vinegar
  • Tobacco and manufactured tobacco substitutes
  • Salt; sulphur; earths and stone; plastering materials, lime and cement
  • Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes
  • Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks.
  • Essential oils and resinoids, perfumery, cosmetic or toilet preparations
  • Soap, organic surface-active agents, washing preparations, lubricating preparations
  • Artificial waxes, prepared waxes, polishing or scouring preparations
  • Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations
  • Chemical products
  • Plastics and articles thereof
  • Rubber and articles thereof
  • Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)
  • Furskin and artificial fur
  • Wood and articles of wood, wood charcoal
  • Paper and paperboard; articles of paper pulp, of paper or of paperboard
  • Headgear and parts thereof
  • Prepared feathers and down and articles made of feather or of down – artificial flowers; articles of human hair
  • Articles of stone, plaster, cement, asbestos, mica or similar material
  • Ceramic products
  • Glass and glassware
  • Articles of iron or steel
  • Copper and articles thereof
  • Aluminium and articles thereof
  • Tools, implements, cutlery, spoons and forks of base metal; parts thereof of base metal
  • Miscellaneous articles of base metal
  • Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof
  • Electrical machinery and equipment and parts thereof; sound recorders and re-producers, television image and sound recorders and reproducers, and parts and accessories of such articles
  • Vehicles other than railway or tramway rollingstocks, and parts and accessories thereof
  • Aircraft; spacecraft and parts thereof
  • Ships, boats and floating structures
  • Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof
  • Clocks and watches and parts thereof
  • Musical instruments; parts and accessories of such articles
  • Arms and ammunition; parts and accessories
  • Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings
  • Toys, games and sports requisites; parts and accessories thereof
  • Miscellaneous manufactured articles
  • Project imports, laboratory chemicals, passengers’ baggage, personal importation, ship stores.

Among the industry delegations who have objected to be included under the 28% tax slab, the most stringent protest came from the All India Tyre Dealers’ Federation (AITDF). The union claims that 28% on tyres of animal drawn carts will ruin the rural logistic industry. The AITDF claims the GST would lead to sharp increase in prices of the caste, which in turn would cripple the rural economy.

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