GST (Goods and Service Tax) is a single tax on the supply of goods and services, right from the manufacturer to the end consumer. There are 4 different GST rates applicable on the goods and services in India.
Let’s learn about the latest GST rates in 2022.
GST Rates 2022
There are 4 tax slabs for the taxpayers registered under GST. The following GST rates are applicable throughout the country and on all the goods and services*:
| GST Slab | Tax Rate |
| Slab 1 | 5% |
| Slab 2 | 12% |
| Slab 3 | 18% |
| Slab 4 | 28% |
GST Rates on Goods
The GST council has fitted over 1400 goods and 500 services under four different GST slabs of 5%, 12%, 18% and 28% under the GST Act. This is aside from the tax on Gold which is kept at 3%, and rough and semi-precious stones that are placed at a special GST rate of 0.25%.
The following are the common goods included in the gambit of GST:
| Goods | GST Rate |
| Food items & Household Necessities – Dried leguminous vegetables, shelled, whether or not skinned or split (packed up in unit container bearing registered brand name) – Nuts (dry-fruits), coffee (other than instant coffee), tea (other than unprocessed green tea leaves), vanilla, ginger (except fresh ginger), saffron, all cereals, put up in unit container and bearing a registered brand name, etc. – Edible oil, sugar, spices, tea, and coffee (except instant) – Life-saving drugs – Indian Sweets (Mithai) – Coal | 5% |
| Computers/ monitors and spectacles, etc. | 12% |
| Hair oil, toothpaste and soaps, capital goods and industrial intermediaries, etc. | 18% |
| Luxury Items – Consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks and high-end motorcycles, etc. | 28% |
GST Rates on Services
| Details of Services | GST Rate |
| Rail tickets (1st class or AC coach), air tickets (economy class), rental cabs, etc. | 5% |
| Air tickets other than economy class, hotel stay (more than Rs 1000 but less than Rs 2,500 per day) | 12% |
| Supply of Food/drinks in restaurant having licence to serve liquor, etc. | 18% |
| Gambling, accommodation in hotels with room rent above Rs 7,500 | 28% |
Special GST Rates – 0.25% and 3%
List of goods at 0.25% GST Rate
| Description of Goods Included |
| Diamonds, non-industrial unworked or simply sawn, cleaved |
| Precious stones (other than diamonds) and semi-precious stones, unworked or simply sawn or roughly shaped |
| Synthetic or reconstructed precious or semi-precious stones, unworked or simply sawn or roughly shaped |
List of goods at 3% GST Rate
| Description of Goods Included |
| Coins |
| Imitation Jewellery |
| Pearls (natural or cultured, whether or not worked or graded but not strung, mounted or set; pearls, natural or cultured, temporarily strung for convenience of transport) |
| Diamonds (whether or not worked, but not mounted or set [other than Non-Industrial Unworked or simply sawn, cleaved) |
| Precious Stones other than diamonds and Semi-Precious Stones {whether or not worked or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience of transport (other than Unworked or simply sawn or roughly shaped)} |
| Synthetic or reconstructed precious or semi-precious stones |
| Dust and powder of natural or synthetic precious or semi-precious stones |
| Silver {(including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form} |
| Gold {(including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form} |
Source: Central Board of Indirect Taxes and Customs
No GST
The following mentioned goods do not attract GST:
- Salt, all types
- Human blood and its components
- Contraceptives, all types
- Electricity
- Plastic bangles
- Condoms
- Printed books, including Braille books
- Children’s picture, drawing or colouring books
- Indian National Flag
- Curd, Buttermilk
- Chena, Paneer (other than put up in unit containers and bearing a registered brand name)
- Live bovine animals
- Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk
- Natural honey (not packed & labelled with a registered brand name)
- Birds’ eggs, in shell (fresh, preserved or cooked)
- Fresh vegetables (not packed and/or preserved)
- Seeds
- Unroasted coffee beans
Source: Central Board of Indirect Taxes and Customs
Detailed GST Slabs
GST Slab with 5% tax
There are 14% of goods and services that fall under this category. Some of the items are the cream, milk powder, branded paneer, frozen vegetables, tea, coffee, spices, pizza bread, cashew nut, cashew nut in shell, raisin, ice, fish fillet, coal, medicine, revenue stamps, fertilizers, rail and economy air tickets, and small restaurants.
GST Slab with 12% tax
There are 17% of goods and services that fall under this category. Some of the items are the butter, cheese, dry fruits, animal fat, fruit juices, namkeen, ketchup and sauces, ayurvedic medicines, indoor games, non-AC restaurants, and business class air tickets, cellphones, spoons, tooth powder, sewing machine, and so on.
GST Slab with 18% tax
There are 43% of goods and services that fall under this category. Some of the items are the biscuits, pasta, cakes and pastries, jams, preserved vegetables, ice creams, mineral water, footwear costing more than INR 500, camera, speakers, monitors, printers, electrical transformer, tissues, optical fibre, sanitary napkins, notebooks, steel products, aluminum foil, bamboo furniture, AC restaurants that serve alcohol, five start or luxury hotels, IT services, telecom services, financial services, and so on.
GST Slab with 28% tax
There are 19% of the goods and services that fall under this category. Some of the items are the cigarettes, caffeinated beverages, cars, two-wheelers, washing machines, cement, paint, air conditioners, the dishwashing machine, yachts, aircraft, aerated beverages, and so on.
Frequently Asked Questions (FAQs)
No. Salt does not attract any GST.
No. Fresh vegetables that are not packed and preserved (not suitable for immediate consumption) do not attract GST.
The GST rate on gold is 3% of its value. If the gold is transformed into jewellery, an additional 5% GST is levied on the making costs.
There is no GST on sanitary pads and tampons.
Also read about Basics of GST, on Investment Simplified.
