Goods and Service Tax

Programme Bachelor of Commerce

Subject Goods and Service Tax
Semester V
University Kuvempu University
Session 41
Procedure and Levy under GST

• Rate of GST.
Recap

• Studied about the different GST rates.

Learning Objectives

• To Understand about the Different GST Rates applicable.

Goods & Services at 18% GST slab

Goods List
• Dairy Products – Ice Cream
• Preserved Vegetables
• Food Items – Flavoured refined sugar, Pasta, Corn Flakes, Pastries,
Cakes, Soups, Instant Food Mixes, Processed Foods
• Beverages – Mineral Water
• Branded Garments
• Footwear – above 500 INR
• Personal Hygiene – Tissues, Toilet Paper, Hair Oil, Soap Bars,
Toothpaste
Continued

• Stationery – Envelopes, Fountain Pens

• Electronic Equipment – Printed Circuits, Monitors
• Iron & Steel Products
• Biri wrapper leaves (Tendu Patta)
• Biscuits
• Textile – Man-made fibre and yarn
Continued..

Services List
• Accommodation at hotels with tariff of more than 2500 INR but less
than 7500 INR
• Supply of food / drinks in AC / 5 star and above rated restaurants
• Telecom Services
• IT Services
• Financial Services
Continued..

• Works Contract
• Cinema Tickets worth 100 INR or less

Goods & Services at 28% GST slab

Goods List
• Food Items – Chocolates, Chewing Gum, Custard Powder
• Beverages – Aerated Water
• Personal Hygiene – Deodorants, Shaving Cream, After Shave, Hair
Shampoo, Dye, Sunscreen, Perfume, Face Creams, Detergents
Continued..

• White Goods – Vacuum Cleaner, Shavers, Hair Clippers, Washing

Machines, Dish Washers, Water Heaters & other Home Appliances
• Speakers
• Cameras
• Automobiles & Motor Vehicles
• Housing Materials – Paint, Wallpaper, Ceramic Tiles, Cement
• Weighing Machines, Vending Machines, ATM
• Fireworks
• Luxury / Demerit Goods* - Pan Masala, Tobacco, Bidis, Aerated Drinks
& Motor Vehicles
Continued..

Service List
• Accommodation at hotels with tariff of more than 7500 INR
• Race course betting
• Cinema Tickets worth more than 100 INR
Articles outside the GST Tax Rate Slabs

• Gold, gems, jewellery – 3%

• Rough Precious & Semi – Precious Stones – 0.25%
Treatment of Luxury / Demerit Goods

• In addition to the rates which have been fixed for major categories of
goods and services, the GST council has approved the compensation
rates for 5 luxury / demerit items.
• The proceeds of this cess will go into the compensation fund which
would be used to bridge any tax revenue gap for states in the first five
years of GST. The items that will be levied with the compensation
cess, over and above the GST tax rates which are applicable on them.
Continued

Items GST Rate Approved Cess

Applicable Cess Range Ceiling
Coal 5% INR 400 / INR 400 /
tonne tonne
Pan Masala 28% 60% 135%

Tobacco 28% 61% - 204% INR 4170 /

thousand
Aerated Drinks 28% 12% 15%

Motor Vehicles 28% 1% – 15% 15%

MCQ

1. On motor vehicle cess cealing is

A. 5%
B. 8%
C. 15%
D. 28%

Ans: C. 15%
MCQ

2. GST Rate on Gold, gems, jewellery is

A. 5%
B. 12%
C. 18%
D. 3%

D. 3%
MCQ

3. Tobacco is considered as
A. Necessary goods
B. Comfort Goods
C. Luxury goods
D. Demerit Goods

D. Demerit Goods
MCQ

4. On Dish Washers GST Rate is

A. 5%
B. 12%
C. 18%
D. 28%

D. 28%
MCQ

5. Assume Mr. X wants to buy a Vacuum Cleaner and its price before
GST is Rs. 10,000. GST on that Vacuum Cleaner will be
A. Rs. 500
B. Rs.1,200
C. Rs. 300
D. Rs.2,800

D. Rs.2,800
Session outcome

• Students will be able to understand the different GST Rates

applicable
• Students will understand the Variety of products comes under
different GST Rates.
Reference

▪ Bhaskara B.G. et al. (2019). Goods and Service Tax- Law and Practice.
Himalaya Publishing House (3rd revised edition).
▪ Vinod K Singhania., Monica Singhania. (2019). Income Tax Including
GST. TAXMANN Publication (62nd Edition).
▪ https://idtc.icai.org/gst.html