Introduction To GST Rate
The much-anticipated 55th GST Council meeting took place on 21st December 2024 in Jaisalmer, Rajasthan, bringing together key decision-makers from across the country. Chaired by the Union Finance and Corporate Affairs Minister, the meeting saw active participation from Union Minister of State for Finance Shri Smt. Nirmala Sitharaman, Chief Ministers, Deputy Chief Ministers, and Finance Ministers from various states and Union Territories. With high expectations, the Council deliberated on crucial tax reforms, policy changes, and sector-specific clarifications, setting the stage for significant shifts in India’s GST framework.
The List of items under New GST Slab Rates
| Items | Old Rate | New Rate |
| A uniform rate for all types of milk cans | – | 12% |
| A uniform IGST rate applies to imports of aircraft tool kits | – | 5% |
| Carton boxes and cases | 18% | 12% |
| All types of solar cookers | 5% | 12% |
| A uniform rate for all types of sprinklers | – | 12% |
| Indian Railways – Platform tickets | – | Exempt |
| Indian Railways – Facility of retiring rooms/waiting rooms | – | Exempt |
| Indian Railways – Cloakroom services | – | Exempt |
| Indian Railways – Battery Operated car services | – | Exempt |
| Hostel accommodation service under certain conditions | – | Exempt |
| Keytruda for cancer treatment | 12% | 5% |
| Vehicles equipped with retrofitting kits for disabled people | Applicability | 5% |
| IGST levied on goods sold at the Indo-Bangladesh border | Applicability | Nil |
The New GST tax slab for Commodities is listed below:
| Goods/Commodities | HSN Code | GST Rate |
| Milk | 401 | 0% |
| Eggs | 407 | 0% |
| Unpacked Rice | 1006 | 0% |
| Unpacked Curd | 403 | 0% |
| Unpacked Lassi | 403 | 0% |
| Unpacked Buttermilk | 403 | 0% |
| Kajal | 3304 | 0% |
| Unpacked food grains | 1001 to 1106 | 0% |
| Unpacked paneer | 406 | 0% |
| Gur (jaggery) | 1701 or 1702 | 0% |
| Unpacked Natural honey | 409 | 0% |
| Fresh vegetables | 0701 to 714 | 0% |
| Fresh Fruits | 0803 to 0810 | 0% |
| Nuts | 802 | 0% |
| Fresh and Chilled Meat of bovine animals | 201 | 0% |
| Salt | 2501 | 0% |
| Unbranded Atta (flour) | 1101 to 1106 | 0% |
| Prasad (offerings made to deities) | 2106 | 0% |
| Unroasted Coffee Beans | 901 | 0% |
| Unprocessed Green Leaves of Tea | 902 | 0% |
| Fresh Ginger | 0910 11 10 | 0% |
| Fresh Turmeric | 0910 30 10 | 0% |
| Ultra-High Temperature (UHT) milk | 401 | 5% |
| Milk Food for Babies | 402 | 5% |
| Yoghurt | 403 | 5% |
| Pre-Packaged and Labelled Curd, Lassi, Buttermilk | 403 | 5% |
| Skins and Parts of Birds like Feathers | 505 | 5% |
| Beet Sugar, Cane Sugar, Jaggery | 1701, 1702, 1704 | 5% |
| Roasted Coffee Beans | 901 | 5% |
| Processed Tea | 902 | 5% |
| Packed Paneer | 406 | 5% |
| Spices | 0906 to 0910 | 5% |
| Packed and Labelled Rice | 1006 | 5% |
| All Packed Cereals | 10 | 5% |
| Coal | 2701 | 5% |
| All Types of Edible Oils | 1507 to 1518 | 5% |
| Raisins | 806 | 5% |
| Domestic LPG (liquefied petroleum gas) | 2711 12 00, 2711 13 00, 2711 19 00 | 5% |
| PDS kerosene (public distribution system kerosene) | 2710 | 5% |
| Cashew Nuts | 0801, 0802, 0813 | 5% |
| Fabric | 500, 5111 to 5113 & 5208 to 5212 | 5% |
| Products of coir | 5609 | 5% |
| Apparel and clothing accessories of sales value not exceeding INR 1000 | 61 or 6501 or 6505 | 5% |
| Glass Beads | 7018 | 5% |
| Charger or Charging Station for EV Operated Vehicles | 8504 | 5% |
| Fishery Products | 8902 | 5% |
| Condensed milk | 0402 91 10, 0402 99 20 | 12% |
| Butter | 405 | 12% |
| Cheese | 406 | 12% |
| Nuts and Dried Dates | 0801, 0802, 0804 | 12% |
| Dried Citrus Fruit | 805 | 12% |
| Fats of Bovine Animals | 1502 | 12% |
| Sausages | 1601 | 12% |
| Refined Sugar Cubes | 1701 91, 1701 99 | 12% |
| Packed Paneer | 406 | 12% |
| All Edibles Prepared or Preserved by Vinegar or Acetic Acid | 2002 | 12% |
| Packed and Labelled Tender Coconut Water | 2009 89 90 | 12% |
| Diabetic foods | 2106 90 91 | 12% |
| Packed Drinking Water in 20 Litre Bottles | 2201 | 12% |
| Marble and Granite Blocks | 2515, 1210, 2516 | 12% |
| Rubber bands | 4016 | 12% |
| Hand bags and shopping bags, of cotton and Jute | 4202 22 20, 4202 22 30 | 12% |
| Idols of Wood, Stone and Non-Precious Metals | 44, 68, 83 | 12% |
| Tableware and Kitchenware of wood | 4419 | 12% |
| Footwear of Sale Value Not Exceeding Rs.1000 Per Pair | 64 | 12% |
| Building Bricks | 6904 10 00 | 12% |
| Malt | 1107 | 18% |
| Hair Oil | 3305 | 18% |
| Vegetable saps and extracts | 1302 | 18% |
| Glycerol | 1520 00 00 | 18% |
| Waxes | 1521 | 18% |
| Chemically Pure Lactose, Maltose, Glucose, and Fructose | 1702 | 18% |
| Chocolate and Cocoa Products | 1804 to 1806 | 18% |
| Pastry Items | 1905 | 18% |
| Ice cream | 2105 00 00 | 18% |
| Non – Alcoholic Beverages | 2202 91 00, 2202 99 90 | 18% |
| Products Containing Nicotine | 2404 12 00 | 18% |
| Ores and Concentrates | 2601 to 2610 | 18% |
| Mineral or chemical fertilisers | 3102 to 3105 | 18% |
| Perfumes and toilet waters | 3303 | 18% |
| Caffeinated Beverages | 2202 99 90 | 28% |
| Carbonated Beverages | 2202 | 28% |
| Tobacco or Tobacco Substitutes | 2402 | 28% |
| Cement | 2523 | 28% |
| Online Gaming | 998439 | 28% |
| Molasses | 1703 | 28% |
| Smoking pipes | 9614 | 28% |
| Aircrafts for personal use | 8802 | 28% |
| Pumps for dispensing fuel | 841311 | 28% |
| Air-conditioning Machines | 8415 | 28% |
| Monitors and Projectors | 8528 | 28% |
| Motor Vehicles | 8701 to 8704 | 28% |
New GST Tax Rates for Services are listed below
| Services | SAC Code | GST Rate |
| Educational Services | Heading 9992 or Heading 9963 | 0% |
| Services of General Insurance Business Provided Under Certain Schemes | Heading 9971 or Heading 9991 | 0% |
| Health Care Services | Heading 9993 | 0% |
| Services Provided by a Goods Transport Agency | Heading 9965 or Heading 9967 | 0% |
| Housekeeping Services Like Plumbing, Carpentering, etc | Heading 9954 | 5% |
| Restaurant Services | Heading 9963 | 5% |
| Outdoor Catering Services | Heading 9963 | 5% |
| Printing of Newspapers, Books, etc. | Heading 9988 | 5% |
| Construction of an apartment | Heading 9954 | 12% |
| Hotel accommodation | Heading 9963 | 12% |
| Transport of passengers by Air | Heading 9964 | 12% |
| Business Services for mining, petroleum crude or natural gas. | Heading 9983 | 12% |
| Construction of Commercial Apartments | Heading 9954 | 18% |
| Services in Retail Trade | Heading 9962 | 18% |
| Services in Wholesale Trade | Heading 9961 | 18% |
| Rental Services of Transport Vehicles | Heading 9966 | 18% |
| Postal and Courier Services | Heading 9968 | 18% |
| Electricity, Gas, Water and Other Distribution Services | Heading 9969 | 18% |
| Services Provided by a Casinos and Race Club | Heading 9954 | 28% |
| Gambling | Heading 9963 | 28% |
Indian GST Updates in the 55th GST Council Meeting in December 2024
- The Group of Ministers (GoM) received an extension to submit their report on compensation cess, rate rationalisation, and health insurance.
- Payment aggregators handling transactions below Rs 2,000 are exempt from GST, but this does not apply to payment gateways or fintech services that do not settle funds.
- No GST will be charged on penal charges collected by banks and NBFCs for loan term violations.
- Dried black pepper and raisins supplied by agriculturists will not attract GST.
- Caramelised popcorn will be taxed like products with added sugar, unlike salted popcorn, which has a 5% GST rate.
- The Council postponed discussions on GST rates for food and delivery charges via quick commerce and food delivery apps.
- Used EVs sold between individuals will not attract GST, but businesses selling refurbished used EVs will be taxed at 18% on the margin value.
- The Compensation Cess on supplies to merchant exporters will be reduced to 0.1%, aligning with the GST rate on such supplies.
- Imports of equipment and consumable samples by the IAEA Inspection Team will be exempt from IGST under specific conditions.
Frequently Asked Questions (FAQs)
How is Goods and Services Tax (GST) classified in India?
GST is classified into four types – Central Goods and Services Tax (CGST), State GST (SGST), Integrated GST (IGST), and UTGST (Union Territory GST).
What is an Input tax credit or ITC?
ITC means Goods and Services Tax paid by a taxable person for the purchase of any goods or services used or intended to be used for business purposes.
What is the use of ITC?
ITC can be used to offset GST liability on the supply of goods and services by the registered person.
What is the new GST rate on ‘Rakhi’?
Rakhi which is a form of ‘Raksha Sutra’ doesn’t attract any tax and Nil GST applies to it.
What is the GST rate and HSN Code for battery for mobile handsets?
Battery for mobile handsets attracts 28% GST and falls under the heading 8506.
What is the HSN code of Isabgol seeds and how much GST tax rate it attracts?
Fresh Isabgol seeds attract no GST, whereas dried or frozen Isabgol seeds attract 5% GST. The HSN Code for the Isabgol seeds falls under the heading 1211.
What is the main difference between the HSN Code and SAC code?
HSN Code applies to Goods or commodities, whereas the SAC applies to services.
What is the minimum limit to GST registration?
For businesses in the majority of the states, GST registration is required if the annual turnover of a business reaches Rs 20 lakhs (for services), and Rs 40 lakhs (for goods).
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