Indian Tax Solution

Before And After GST: Here Are Tax Rates On Some Common Use Items

GST or Goods and Services Tax replaced a slew of central and state levies from July 1. For the month of July, firms are required to file simplified, self-assessed GST returns by August 20. They will have to file complete returns in early September that itemise and reconcile every single sales invoice. Amid all this, the Central Board of Excise and Customs has once again listed some common-use items - and their pre-GST tax rates - where the tax incidence is lower or equal ever since GST came into effect. It has mentioned several "items of common use" comparing GST rates with the earlier indirect taxes.

"The pre-GST tax incidence would be higher if the tax incidence on account of CST (Central Sales Tax), octroi, entry tax etc. (which is more than 2 per cent) is also included," said the CBEC, part of the revenue department under the finance ministry.

For example, items that now attract nil taxes under GST include wheat/rice, unbranded flour, curd, butter milk, unbranded natural honey and children's drawing books. The earlier tax incidence on such items was in the range of 2.5 -7 per cent, according to the CBEC. Also, items such as UTH (ultra high temperature) milk, tea, milk powder, sugar, vegetable edible oils, spices and footwear (priced up to Rs. 500) will attract taxes of 5 per cent under GST, compared with the earlier tax incidence of 6-10 per cent.

Here's the list of GST rate on some common use items, as given by the CBEC:

Description of goods Pre-GST tax incidence GST rate
Wheat 2.5% 0%
Rice 2.47% 0%
Unbranded flour 3.5% 0%
Curd/lassi/butter milk 4% 0%
Unbranded natural honey 6% 0%
Ultra high temperature (UTH) milk 6% 5%
Tea (other than unprocessed green leaves of tea) 6% 5%
Milk powder 6% 5%
Sugar 6% 5%
Sweetmeats 7% 5%
Vegetable edible oils 6% 5%
Spices 6% 5%
Ketchup and sauces 12% 12%
Mustard sauces 12% 12%
Toppings, spreads and sauces (other than mayonnaise, salad dressings, mixed condiments and mixes seasonings) 12% 12%
Mineral water 27% 18%
Sugar confectionery 21% 18%
Children's picture/drawing/colouring book 7% 0%
Footwear of RSP (retail sale price) up to Rs. 500 per pair 10% 5%
Kerosene pressure lantern 8% 5%
Coal 9% 5%
Tooth powder 12% 12%
LED 15% 12%
X-ray films for medical use 23% 12%
Diagnostic kits and reagents 16% 12%
Fixed speed diesel engines of power not exceeding 15HP 16% 12%
Fly ash bricks and fly ash blocks 16% 12%
Sewing machine 16% 12%
Hair oil 27% 18%
Toothpaste 27% 18%
Soap 27% 18%
Footwear of RSP more than Rs. 500 per pair 21% 18%
LPG stove 21% 18%
Aluminum foil 19% 18%
School bag 22% 18%
Printers (other than multifunction printers) 19% 18%
Staplers 27% 18%
Tractor rear tyres and tractor rear tyre tubes 20% 18%
Helmet 20% 18%
CCTV 19% 18%
Baby carriages 27% 18%
Plastic tarpaulin 19% 18%
Bamboo furniture 23% 18%
Headgear and parts thereof 27% 18%
Cement 29% 28%

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