Tax Rates of GST in 2021

Tax Rates of GST in 2021 | GST Rates & Slabs

There are four types of GST:- Integrated Goods and Services(IGST), State Goods and Services Tax(SGST), Central Goods and Service Tax (CGST), and Union Territory Goods and Service Tax(UTGST). The taxation rate under each of them is different.

The new indirect tax regime under the Goods and Service Tax was rolled out on 1st July 2017, had witnessed a considerable amount of confusion over how the new taxation system will affect businesses, and the payment of taxes. The Goods and Services Tax (GST) has subsumed several local taxes that were levied on goods or/ in services.

Check Here for Details:- GST Acts and Rules

GST Rate revision in 42nd GST council meeting

The 42nd GST council meeting was held on 05 October 2020 and the following decisions have been taken regarding GST rates.

  • GST exemption provided to satellite launch services by ISRO, Antrix Corporation, and New Space India Limite (NSIL) to encourage the space launching services in India.
  • The non-alcohol-based sanitizers will continue to be taxed at an 18%  GST rate.

GST Rate revision in 39th GST council meeting

39th GST Council meeting was held on 14 March 2020, Saturday at New Delhi.

The following are the rate cuts announced at the 39th GST Council meeting: 

Item Old Rate New Rate
Mobile phones and specified parts 12% 18%
Handmade matches 5% 12%
Other than handmade matches 18% 12%
Aircraft MRO (Maintainance, Repair, Overhaul) services 18% 5%(with full ITC)

GST Rate revision in 31st GST council meeting

Here is a summarised version of the list of rate cuts on both Goods and Services:

SL.No/th> List of Goods/Services Changes in Tax Rate
1 Vegetables provisionally preserved but unsuitable for immediate consumption 5% to Nil
2 Vegetables cooked/uncooked via steamed, frozen, or boiled (branded) 5% to Nil
3 Music Books 12% to Nil
4 Parts for manufacturing renewable energy devices falling under chapter 84, 85, or 94 of Tariff 5%
5 Natural cork 12% to 5%
6 Fly ash blocks 12% to 5%
7 Walking Sticks 12% to 5%
8 Marble Rubber 18% to 5%
9 Agglomerated cork 18% to 12%
10 Cork roughly squared or debugged 18% to 12%
11 Articles of natural cork 18% to 12%
12 Movie Tickets < or = Rs 100 18% to 12%
13 Premium on Third-party insurance on Vehicles 18% to 12%
14 Accessories for Handicapped Mobility Vehicles 28% to 5%
15 Power Banks 28% to 18%
16 Video game consoles, types of equipment used for Billiards and Snooker, and other sport-related items of HSN code 9504 28% to 18%
17 Retreated & used pneumatic Rubber Tyres 28% to 18%
18 Colour Television Sets & monitors up to “32 Inches” 28% to 18%
19 Digital & Video Camera recorders 28% to 18%
20 Pulleys, transmission shafts, cranks, and gearboxes under HSN 8483 28% to 18%
21 The tax rate on Air travel of pilgrims reduced* 28% to 18%

New GST Rates as on 2021

Items Old Rate Tax New Rate Tax
refrigerators, lithium batteries, vacuum cleaners, grinders, mixers, food processors, water heaters, hairdryers, water coolers, ice cream freezers, scents, perfumes, powder puffs, cosmetics, and electric ironing machines 28% 18%
Sanitary napkins, Stone, marble, and wooden deities, Rakhis without precious stones, brooms and commemorative coins, Fortified milk 5% NIL
Handloom items priced below Rs 1,000
Footwear priced below Rs 1,000
Handbags
Jewelry boxes
Wooden photo frames
Stone art wear
Ornamental frame mirrors
Glass art ware
Aluminum art ware
Handmade carpets
Ethanol
12% 5%
Bamboo flooring
Hand-operated rubber rollers
Zip fasteners
18% 12%
All Leather Items 28% 18%

Updated New GST Rates 2021

Items Old Rates New Rates
Second-hand medium and large cars and SUVs 28% 18%
LPG supply for household domestic consumers by private LPG distributors 18% 5%
BioFuels Powered buses 28% 18%
Sugar boiled confectionery 18% 12%
Drinking water packed in a 20-liter bottle 18% 12%
Drip irrigation system 18% 12%
Cigarette filter rods 12% 18%
Tailoring Service 18% 5%
The admission to Theme parks, water parks, etc. 28% 18%
5% Tax Slab
  • Sugar, Tea, Coffee, and Elbile oil will fall under the 5%  slab, while cereals, milk part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices. However, instant food has been kept outside this bracket so, no relief for Maggie lovers!
  • Coal to be taxed at 5% against the current 11.69%. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Except for a good run for Coal India tomorrow.
  • The ‘mithai’ from the neighboring sweet shop might lose some of its flavors as Indian sweets will now be taxable at 5%. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.
18% Tax Slab
  • Toothpaste, hair oil, and soaps will all be taxed at 18%, where currently they are taxed at 18%, where currently they are taxed at 28% Most of the cosmetics and fast-moving consumer goods (FMCG) brands should get the benefit of this tax reduction. After all, Fair and Lovely might seem fairer in its pricing from now on!
  • The Council has set the rate for capital goods and industrial intermediate items at 18 percent. This will positively impact domestic manufactures as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.

Service Under GST Slabs 

  • For restaurants serving alcohol, the tax bracket will be 18 percent
  • Education, healthcare are going to be exempted from GST
  • Services on Non-AC restaurants will be 12%

Check here for more details of GST Slabs

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