The chicken is finally out - GST rate finalised at 0 %, 5%, 12%,18% & 28 %

GST rate has been finalised and has been announced by none other than Finance Minister , Arun Jaitley with details as below :-

There will be several Zero rate products meaning there will be zero tax imposed on products, which will include food grains used by middle class in India. Almost 50 per cent of the CPI index product basket will now be taxed at Zero tax rate.

The standard GST rate has been finalised at 12 per cent and 18 per cent. For demerit, sin goods and Luxury goods, which include Aerated drinks, Pan Masala, Luxury Goods and Tobacco the rate will be 28 per cent and the additional taxes will be levied in the form of cess. The current tax rates will essentially remain same for this category of products. However, the rate will now be taxed at 28 per cent and the additional taxes will be levied in the form of cess. For e.g. if Tobacco attracts 40 per cent tax in current tax structure, in the new tax structure the tax will be collected at 28 per cent, and an  additional 12 per cent will be collected in the form of cess.

The GST rates will essentially be 5 per cent , 12 per cent, 18 per cent and 28 per cent. 5 per cent tax will be applicable on mass consumption products.

The list of which items will fit under which tax category will be separately published and will be keenly watched by the market participants.