GST Rates in 2023-List of Goods and Service Tax Rates, Slab & Revision
Updated on : Feb. 25, 2023 - 4 p.m. 17 min read.
The GST rates holds immense significance for businesses and consumers in India. Whenever the GST Council revises the GST rates, it affects various industries, trade bodies, and ultimately the economy, making it crucial for everyone to keep track of the changes. It becomes imperative to assess the impact of these changes on one's position in the market. To aid in this process, our HSN cum GST rates finder offers an accurate and up-to-date GST rate applicable to a particular product or service.
In this article, we will discuss the meaning of GST rates and provide the latest GST rates in India for the year 2023.
GST rates are the taxes levied on the sale of goods or services under the CGST, SGST, and IGST Acts. When a business is registered under the GST law, it is required to issue invoices that include the GST amounts charged on the value of the supply.
For intra-state transactions, the GST rates in CGST and SGST are almost identical. On the other hand, for inter-state transactions, the GST rate in IGST is roughly equal to the combined amount of CGST and SGST rates. Therefore, businesses must be aware of the applicable GST rates based on the nature and location of their transactions.
GST Rate structure in India
The GST has different rates based on the type of goods or services being provided. These rates are broadly categorized into four categories:
- 5% GST rate: This is the lowest GST rate, and it is levied on essential goods such as food items, books, and other basic necessities. The government has kept the rate low to ensure that the common man is not burdened with high taxes on essential goods.
- 12% and 18% GST rate: These rates are applicable on goods and services that are not considered essential, but are still used by a majority of people. Examples of goods and services that fall under this category are cosmetics, electronic gadgets, and other luxury items.
- 28% GST rate: This is the highest GST rate, and it is levied on goods and services that are considered luxury items such as expensive cars, yachts, and other high-end products.
- Nil GST rate: Certain goods and services are exempt from the GST. For example, education and healthcare services are exempt from the GST, as they are considered essential services.
The GST rate structure has been designed to ensure that the tax burden is distributed fairly among the citizens. The government has kept the rates low on essential goods to ensure that the common man is not burdened with high taxes on basic necessities. At the same time, the government has levied a high rate of tax on luxury items to ensure that the rich pay their fair share of taxes.
GST Rate Changes at 49th GST Council meeting
GST rate revised in 49th GST Council meeting took place on 18th February 2023 as follows-
Other key GST rates updated
Due to a shortage of time, the issue of aligning MUV classification with SUVs was not addressed during the meeting.
- The fitment committee will conduct further research on the GST rate for cement, and it may be included in the agenda for the next Council meeting.
- The discussions on the GST rate cut for millet-based health products did not lead to a consensus, and further deliberations are needed.
- Additionally, GST will apply on reverse charge for services such as renting premises for commercial use to local bodies and services provided by court/tribunal registrars.