Goods and services tax slab rates, 2023 in India continue to be levied under the five key slab rates namely – 0%, 5%, 12%, 18%, and 28%. Having said that, the slab rates aim to simplify the taxation system while ensuring a balance between revenue generation and consumer affordability in 2023.
In addition to the above slab rates of goods and services tax (GST), the GST is of three types namely IGST, CGST, and SGST/UTGST. IGST is for the inter-state supply of goods or services whereas, CGST and SGST/UTGST are for intrastate supply of goods or services.
Now, let us state the GST slab rates for each category.
GST Slab Rates, 2023: Categories
The GST rates in India in 2023 have four different GST slabs: 5%, 12%, 18%, and 28%. Goods and services tax in India are taxable at different rates on the basis of their nature, category, as well as usage.
The following table enlists the GST slabs for different categories in India in 2023:
| Category | Category Type | GST Slab Rate |
|---|---|---|
| I | Dairy products, Unpacked food grains | 0% |
| II | Essential goods | 5% |
| III | Common use items | 12% |
| IV | Standard goods | 18% |
| V | Luxury goods | 28% |
GST Rates 2023 on goods & services – 0% or NIL Rated items
| Goods | Services | GST Rate |
|---|---|---|
| Fresh Milk | Services by an organiser to any person in respect of a business exhibition held outside India. | 0% |
| Eggs | Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India. | 0% |
| Curd | Services by a foreign diplomatic mission located in India. | 0% |
| Lassi | Services by way of providing information under the Right to Information Act, 2005 (22 of 2005). | 0% |
| Kajal | Services provided by National Skill Corporation | 0% |
| Unbranded aata | Services by a veterinary clinic in relation to health care of animals or birds | 0% |
| Unbranded maida | Health care services | 0% |
| Children’s Drawing & Coloring Books | Educational services provided by recognised educational institutions | 0% |
| Unpacked Foodgrains | Services provided by a clinical establishment by way of providing room in NICU having charges of less than Rs. 5000 per day | 0% |
| Unpacked Paneer | Services for conducting religious ceremony | 0% |
| Gur | Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo. | 0% |
| Unbranded Natural Honey | Services of general insurance business provided under Scheme of Nirmaya Health Insurance | 0% |
| Fresh Vegetables | Services by an old age home run by Central Government, State Government or any registered organisation | 0% |
| Salt | Import of services by United Nations for official use | 0% |
| Besan | Services by way of loading, unloading, packing, storage or warehousing of rice. | 0% |
| Prasad | Services by way of storage or warehousing of cereals, pulses, fruits and vegetables | 0% |
| Palmyra Jaggery | Services provided by arbitral tribunal | 0% |
| Phool Bhari Jhadoo | Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets. | 0% |
Also Read: Know Types of GST Returns, Filing Period & Due Dates
GST Rates on goods and services – 5%
| Goods | Services | GST Rate |
|---|---|---|
| Sugar | Catering services in Indian Railways | 5% |
| Tea | Services by way of housekeeping like plumbing, carpeting, etc | 5% |
| Packed goods pre-packaged and labelled (eg curd, lassi, milk, paneer, etc) | Outdoor catering services | 5% |
| Coal | Catering services in cinema halls | 5% |
| Edible Oils | Travel by air (economy class) | 5% |
| Raisin | Transport by way of radio taxi | 5% |
| Domestic LPG | Travel by ropeway services | 5% |
| Roasted Coffee Beans | Transport of goods by ropeways | 5% |
| PDS Kerosene | Time charter of vessels for transport of goods | 5% |
| Skimmed Milk Powder | Supply consisting only of e-book | 5% |
| Cashew Nuts | Tour operator services | 5% |
| Footwear (< Rs.500) | Maintenance, repair or overhaul services in respect of aircrafts | 5% |
| Milk Food for Babies | Services by way of job work in relation to printing of newspapers | 5% |
| Apparels (< Rs.1000) | Services wrt printing of newspapers and books | 5% |
| Fabric | Tailoring services | 5% |
| Coir Mats, Matting & Floor Covering | Time charter of vessels for transport of goods | 5% |
| Spices | Travel by railways (first class) | 5% |
| Agarbatti | Services provided by a clinical establishment by way of providing room in NICU having charges of more than Rs. 5000 per day | 5% |
| Coal | Transportation of petroleum through pipeline | 5% |
| Mishti/Mithai (Indian Sweets) | Maintenance, repair or overhaul services in respect of ships and other vessels | 5% |
| Life-saving drugs | Services by way of job work in relation to textile | 5% |
| Coffee (except instant) | Transportation of natural gas through pipeline | 5% |
Slab Rates 2023 on Goods & Services – 12%
| Goods | Services | GST Rate |
|---|---|---|
| Butter | Construction of an apartment in an ongoing project | 12% |
| Ghee | Hotel accommodation having value less than or equal to Rs. 7500 per day | 12% |
| Computers | Travel by air (business class) | 12% |
| Processed food | Multimodal transportation of goods | 12% |
| Almonds | Renting of goods carriage where the cost of fuel is included in the consideration charged from the service recipient | 12% |
| Mobiles | Service of third party insurance of “goods carriage” | 12% |
| Fruit Juice | Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both | 12% |
| Preparations of Vegetables, Nuts Fruits, or other parts | Exploration, mining or drilling of petroleum crude or natural gas or both. | 12% |
| Packed Coconut Water | Services by way of treatment of effluents by a Common Effluent Treatment Plant | 12% |
| Umbrella | Services by way of job work in relation to manufacture of umbrella | 12% |
Also Read: Latest Rules related to setting off of Input Tax Credit
GST Rates on goods & services – 18%
| Goods | Services | GST Rate |
|---|---|---|
| Hair Oil | Construction of a complex, building, civil structure | 18% |
| Capital goods | Domestic services | 18% |
| Toothpaste | Postal and courier services | 18% |
| Industrial Intermediaries | Electricity, gas, water and other distribution services | 18% |
| Soap | Real estate services | 18% |
| Ice-cream | Research and development services. | 18% |
| Pasta | Services in wholesale & retail trade | 18% |
| Toiletries | Real estate services | 18% |
| Corn Flakes | 18% | |
| Soups | 18% | |
| Computers | 18% | |
| Printers | 18% |
GST Slab Rates on Goods – 28%
| Goods | Services | GST Rate |
|---|---|---|
| Small cars (+1% or 3% cess) | Services by way of admission in casinos or race clubs | 28% |
| High-end motorcycles (+15% cess) | Gambling | 28% |
| Consumer durables such as AC and fridge | Online gaming | 28% |
| Molasses | Sports events like IPL | 28% |
| Luxury & sin items like BMWs, cigarettes | Food and drinks at 5 star and above hotels | 28% |
| Aerated drinks (+15% cess) | Go-carting services | 28% |
Also Read: Benefits of Filing GST Returns on Time
Revisions in GST Rates, 2023
Through the 50th GST Council Meeting, the following changes have been made in the GST slab rates of 2023:
| List of Items | Old GST Rate | New GST Rate |
|---|---|---|
| Food and Beverages in Cinema Halls | 18% | 5% |
| Uncooked, Unfried, and Extruded Snack Palettes | 18% | 5% |
| Cancer-Related Medicine | – | Exempt |
| Food for Special Medical Purposes (FSMP) | – | Exempt |
| Medicines for Rare Diseases | – | Exempt |
| Imitation Zari Thread or Yarn | 12% | 5% |
| Fish Soluble Paste | 18% | 5% |
| LD Slag | 18% | 5% |
| Casinos, Online and Horse Racing {Online Gaming} | 18% | 28% |
From the above slab rates of goods and services tax, it is safe to say that more the goods or services are of non-common use, the higher the GST rate will be & vice versa.
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