gst rate list 2018

Review GST Rates List 2018 Explained with Examples

Almost every Indian is now aware of Goods and Service Tax (GST) and have been noticing the difference between the payment they used to make before GST and what they are paying right now. The functioning can be understood with the help of an example where the taxes before GST were implemented.

In this article, we have focused on the meaning of this new tax regime and tried to make it possible for you to understand the payment system.

What is GST in the simplest form?

GST is a consumption based tax levied on sale, manufacture, and consumption of goods & services at a national level. This tax is the substitute for all indirect tax levied by state and central government. Exports and direct tax like income tax, corporate tax, and capital gain tax will not be affected by GST.

GST applies to all goods other than crude petroleum, motor spirit, diesel, aviation turbine fuel, and natural gas. It would apply to all services barring a few to be specified. With the increase of international trade in services, GST has become a global standard. The proposed tax system will take the form which is concurrently levied by central and state government. This will comprise of:

  • Central GST (CGST) which will be levied by Centre
  • State GST (SGST) Which will be levied by State
  • Integrated GST (IGST) – which will be levied by Central Government on the inter-State supply of goods and services.

What is the difference between processing fee on Loans before and after GST?

The tax applicable on loans comes under GST tax list 2018 of 18 per cent. If the disbursal amount for your personal loan is ₹2,00,000 the difference between the processing fee is as follows:

Before GST- Processing fee (1% of the loan amount) + Service Tax (15% of the processing fee) = ₹2,000 + 300 = ₹2,300

After GST- Processing fee (1% of the loan amount) + GST (18% of the processing fee) = ₹2,000 + 360 = ₹2,360

If the disbursal amount for your home loan is ₹20,00,000 the difference between the processing fee is as follows:

Before GST- Processing fee (1% of the loan amount) + Service Tax (15% of the processing fee) = ₹20,000 + 3000 = ₹20,300

After GST- Processing fee (1% of the loan amount) + GST (18% of the processing fee) = ₹20,000 + 3600 = ₹20,360

List of Services Under 5% GST rate

  1. Transport of passengers by rail in first class or AC coaches with ITC of input services
  2. Transport of passengers, by (a) AC contract carriage other than motorcab; (b) AC stage carriage; (c) radio taxi No ITC
  3. Transport of passengers by air in economy class with ITC of input services
  4. Transport of passengers, by air, embarking from or terminating in a Regional Connectivity Scheme Airport with ITC of input services
  5. Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient No ITC
  6. Transport of goods by rail with ITC of input services

List of Services Under 12% GST rate

  1. Supply of food/drinks in non-AC restaurants and not serving liquor
  2. Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day
  3. Transport of passengers by air in other than economy class
  4. Transport of goods in containers by rail by any person other than Indian Railways
  5. Services provided by the foreman of chit fund in relation to chit with ITC of input services

List of Services Under 18% GST rate

  1. Supply of Food/drinks in the restaurant having the license to serve liquor
  2. Supply of Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year
  3. Supply of Food/drinks in outdoor catering
  4. Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/- and above but less than Rs 7500/- per room per day

List of Services Under 28% GST rate

  1. Accommodation in hotels including 5 stars and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per day per room  
  2. Services by way of admission to entertainment events or access to amusement facilities including exhibitions of cinematograph films, theme parks, water parks, joy rides, merry-go-rounds, go-carting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like
  3. Services provided by a race club by way of totalisator or a license to the bookmaker in such club
  4. Gambling

Read AlsoTax Rate slab for Loans under GST Tax List

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