GST launched in India: A look at tax rates and how it will impact your basic expenses | business news | Hindustan Times
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GST launched in India: A look at tax rates and how it will impact your basic expenses

The GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses.

business Updated: Jul 06, 2017 09:58 IST
HT Correspondent
HT Correspondent
New Delhi, Hindustan Times
1/7

India is all set for its most ambitious reform in decades, which is expected to transform the world’s fastest growing major economy into a single market for the first time. The long-awaited Goods and Services Tax (GST) rolls out Saturday even as businesses complain they are ill-prepared for the massive changes about to ripple through India’s unwieldy $2 trillion economy. (Dibyangshu Sarkar / AFP)

In the making since 2000, the Goods and Services Tax (GST) comes into effect from July 1.

Touted by the government as the biggest tax reform since Independence, the GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses.

In these 17 long years, GST has undergone several conceptual changes to finally emerge as a multi-rate tax structure, which economists believe will undermine the advantages that a simple-structured, uniform indirect tax would have affected.

Foodgrains, cereals and vegetables have been zero rated under GST, other rate slabs are 5%, 12%, 18% and 28%. A cess will also be added to certain sin and luxury products.

Here is a look at the different tax rates and how it might impact you:

GST: What will you pay?
This is how GST will impact basic expenses
Tax burden goes up
Current effective tax rate includes central excise duty, VAT and all various local levies.
* This is the cess that will be applicable on cars
Tax burden comes down
Source: EY, GST Council | Caveat: These are for illustration purposes only. Not meant for direct implementation or reliance. These rates are based on best of our understanding of the applicable rates and should not be taken as an assurance of the ultimate rates. The rates are based on submission as of the June 20, 2017
Nil GST rates: Meat, other than frozen and in unit containers Fish, fresh or chilled Dairy products Eggs, salt Human blood and components Contraceptives Fresh fruits and vegetables Non-branded cereals and flour, jaggery Non-branded organic manure Judicial, non-judicial stamp papers; inland, post cards Non-precious metal bangles and agricultural hand tools