The Goods and Services Tax (GST) is a unified tax system in India that replaced numerous indirect taxes, such as value-added tax (VAT), excise duty, and service tax. The GST system has been implemented with the aim of streamlining the taxation system in India and making it more efficient. In this article, we will discuss the GST rates in India and what you need to know about them.
What are GST rates in India?
The GST rate list comprises four slabs, namely 0%, 5%, 12%, 18%, and 28%. The GST council has assigned each good and service to one of these five tax slabs.
Here is a summary of GST slab rates:
GST rate |
Applicable goods/services |
0% |
Essential commodities such as food grains, milk, fresh fruits and vegetables, healthcare services, education, and transportation services. |
5% |
Household necessities like edible oils, sugar, tea, coffee, coal, spices, and ayurvedic medicines. |
12% |
Processed food items, frozen meat products, butter, cheese, ghee, mobile phones, and industrial intermediaries. |
18% |
Most goods and services fall under this slab, including clothing, footwear, electronics, restaurant services, and financial services. |
28% |
Luxury items such as automobiles, high-end electronics, tobacco products, and aerated drinks. Additionally, some services like five-star hotel accommodations and movie tickets also fall under this category. |
The GST Council regularly reviews the GST rate list and makes adjustments based on economic conditions and the needs of the industry.
What is the impact of GST?
The implementation of GST has brought several benefits, including the following:
- Streamlined tax system: GST has streamlined the taxation system in India, reducing the complexity of the tax structure and making compliance easier for taxpayers.
- Improved efficiency: GST has reduced the cascading effect of taxes and has eliminated multiple taxes, resulting in improved efficiency.
- Reduced tax liability: GST has reduced tax liability, benefiting both businesses and consumers.
- Improved competitiveness: GST has made goods and services more competitive by reducing the overall tax burden.
- Boost to the economy: GST has been a major economic reform, with the potential to boost India's GDP by 2% to 2.5%.
Why Bajaj Finserv Business Loan?
While navigating the intricacies of GST rates is essential for business success, access to adequate financing is equally crucial for fuelling growth and expansion. With Bajaj Finserv Business Loan, businesses can access tailored financing solutions designed to meet their unique needs.
With loan amounts up to Rs. 80 lakh and flexible repayment options, our business loan can help you take your business to the next level. Here are some benefits of opting for our business loan:
- Quick disbursal of funds
- Low interest rates
- No collateral required
- Approval within 48 hours
- Flexible repayment tenure of up to 96 months
Whether you are looking to invest in infrastructure, expand your operations, or optimise working capital, Bajaj Finserv Business Loan offers the financial support you need to thrive in today's competitive market.
