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    GST (Goods and Services Tax)

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    canand34
    GST (Goods and Services Tax) aims to simplify India's tax system by creating a single tax to be applied at every step of production from manufacturer to consumer. It is intended to remove unpredictability, bring equality to product prices nationwide, lower business costs, and create a unified market. Goods and services are divided into 5 GST rate slabs of 0%, 5%, 12%, 18%, and 28% based on the type of product. Exemptions include essential items while higher rates generally apply to luxury and sin goods. The goal of GST is to develop a more coherent and transparent indirect tax structure across India.

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    GST (Goods and Services Tax)

    Uploaded by

    canand34
    25 views3 pages
    GST (Goods and Services Tax) aims to simplify India's tax system by creating a single tax to be applied at every step of production from manufacturer to consumer. It is intended to remove unpredictability, bring equality to product prices nationwide, lower business costs, and create a unified market. Goods and services are divided into 5 GST rate slabs of 0%, 5%, 12%, 18%, and 28% based on the type of product. Exemptions include essential items while higher rates generally apply to luxury and sin goods. The goal of GST is to develop a more coherent and transparent indirect tax structure across India.

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    GST (Goods and Services Tax) aims to simplify India's tax system by creating a single tax to be applied at every step of production from manufacturer to consumer. It is intended to remove unpredictability, bring equality to product prices nationwide, lower business costs, and create a unified market. Goods and services are divided into 5 GST rate slabs of 0%, 5%, 12%, 18%, and 28% based on the type of product. Exemptions include essential items while higher rates generally apply to luxury and sin goods. The goal of GST is to develop a more coherent and transparent indirect tax structure across India.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    25 views3 pages

    GST (Goods and Services Tax)

    Uploaded by

    canand34
    GST (Goods and Services Tax) aims to simplify India's tax system by creating a single tax to be applied at every step of production from manufacturer to consumer. It is intended to remove unpredictability, bring equality to product prices nationwide, lower business costs, and create a unified market. Goods and services are divided into 5 GST rate slabs of 0%, 5%, 12%, 18%, and 28% based on the type of product. Exemptions include essential items while higher rates generally apply to luxury and sin goods. The goal of GST is to develop a more coherent and transparent indirect tax structure across India.

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    GST ( Goods and Services Tax )

    Currently, you pay a "tax on tax" on every purchase that you make throughout the
    value chain. This not only increases the taxes to as high as roughly 25-30%, but also
    boosts the end cost of the goods and services.

    Goods and Services Tax (GST) is a single tax on the supply of goods and services,
    right from the manufacturer to the end consumer. It aims to remove the
    unpredictability and bring equality in the prices of products across the country. It
    eventually aspires to reduce the manufacturing cost of businesses and create a unified
    and streamlined market where the cost of goods and services will be more even across
    the country.

    GST rate slabs

    The GST council has fitted over 1300 goods and 500 services under four tax slabs of
    5%, 12%, 18% and 28% under GST. This is aside the tax on gold that is kept at 3%
    and rough precious and semi-precious stones that are placed at a special rate of 0.25%
    under GST.
    Exempted GST Rate Slab (No Tax)
    7% goods and services fall under this category. Some of these that are of regular
    consumption include fresh fruits and vegetables, milk, butter milk, curd, natural
    honey, flour, besan, bread, all kinds of salt, jaggery, hulled cereal grains, fresh meat,
    fish, chicken, eggs, along with bindi, sindoor, kajal, bangles, drawing and coloring
    books, stamps, judicial papers, printed books, newspapers, jute and handloom, hotels
    and lodges with tariff below INR 1000 and so on.

    5% GST Rate Slab


    14% goods and services fall under this category. Some of these include apparel below
    INR 1000 and footwear below INR 500, packaged food items, cream, skimmed milk
    powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk,
    sabudana, cashew nut, cashew nut in shell, raisin, ice, fish fillet, kerosene, coal,
    medicine, agarbatti (incense sticks), postage or revenue stamps, fertilizers, rail and
    economy class air tickets, small restaurants, and so on.

    12% GST Rate Slab


    Edibles like frozen meat products, butter, cheese, ghee, dry fruits in packaged form,
    animal fat, sausages, fruit juices, namkeen, ketchup & sauces, ayurvedic medicines,
    all diagnostic kits and reagents, cellphones, spoons, forks, tooth powder, umbrella,
    sewing machine, spectacles, indoor games like playing cards, chess board, carom
    board, ludo, apparels above INR 1000, non-AC restaurants, business class air ticket,
    state-run lottery, work contracts and so on attract a 12% GST. 17% of goods and
    services fall under this category.

    18% GST Rate Slab


    43% of goods and services fall under this category. Pasta, biscuits, cornflakes, pastries
    and cakes, preserved vegetables, jams, soups, ice cream, mayonnaise, mixed
    condiments and seasonings, mineral water, footwear costing more than INR 500,
    camera, speakers, monitors, printers, electrical transformer, optical fiber, tissues,
    sanitary napkins, notebooks, steel products, headgear and its parts, aluminum foil,
    bamboo furniture, AC restaurants that serve liquor, restaurants in five-star and luxury
    hotels, telecom services, IT services, branded garments and financial services and so
    on attract an 18% GST.

    28% GST Rate Slab


    19% of goods and services fall under this category. The rest of edibles like chewing
    gum, bidi, molasses, chocolate not containing cocoa, waffles and wafers coated with
    chocolate, pan masala, aerated water, personal care items like deodorants, shaving
    creams, after shave, hair shampoo, dye, sunscreen, paint, water heater, dishwasher,
    weighing machine, washing machine, vacuum cleaner, automobiles, motorcycles, 5-
    star hotel stays, race club betting, private lottery and movie tickets above INR 100 etc.
    have been clubbed together under the 28% GST slab.

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