New GST Rates 2023 – All Goods and Services in India

By Gagandeep Singh August 5, 2023 Guide 0 Comments

GST (Good and Services Tax) is defined as a new tax system that replaced the old indirect taxes system in India such as excise duty, VAT, services tax, etc. On 28th February 2006, GST was first introduced in the Budget Speech, which laid the foundation for a newly reformed India’s indirect tax system. Finally, on 1st July 2017, GST was implemented, thus the indirect taxation system goes through a chain of amendments after its foundation.

Now, GST replaced all the indirect taxes on goods and services which are decided by the Central Board of Indirect Taxes and Customs (CBIC).

GST means a destination-based, multi-stage, overall tax levied at every phase of value addition. This replaces the old multiple indirect taxes system in India to achieve the ‘One Nation One Tax’ agenda of the Indian Government.

The tax is implemented on every good and service sold on India’s domestic border for consumers. This structure is adopted by many nations worldwide with their respective modifications according to their country and it successfully simplified India’s indirect taxation structure.

GST comes pre-applied on the final market price of goods and services which is shown as the maximum retail price. Customers have to pay this tax on the purchase of goods and services as the final price which is collected by the seller and paid to the government, implying indirect extraction.

The Indian government applied the same GST rates on different goods and services nationwide. However, goods and services come under different slab rates for tax payments. For example, luxury and comfort goods are classified as higher slab, whereas important necessities are classified as lower or nil slab rates. The main goal of this distribution is to ensure equal spreading of wealth among natives of India.

Types of GST

There are 4 types of GST Tax levied in India.

Integrated Goods and Services Tax (IGST)
State Goods and Services Tax (SGST)
Central Goods and Services Tax (CGST)
Union Territory Goods and Services Tax (UTGST)

Integrated Goods and Services Tax (IGST):-

This GST tax is applied between the interstate (2 states) of goods and services from one state to another which is paid by businesses in the form of GST, including exports and imports. Under IGST, the tax collected goes to the Central Government, which is later divided among the various states.

For example, if a trader from Punjab sold some goods to a customer in Delhi for Rs.6000, then the IGST is applied to this transaction as an interstate transaction. If the GST rate is 18% on the goods, then the trader will charge Rs. 7080 for the goods. And the collected Rs.1080 goes to the central government.

State Goods and Services Tax (SGST):-

This GST tax is applied on intrastate (means in the same state) transactions of goods and services. This tax replaces all previous taxes such as entry tax, entertainment tax, state sales tax, value-added tax, cesses, or surcharges. The collected tax by the trader is sent to the state government which further sends 50% of the tax to the central government.

For example, if a trader from Punjab sold some goods to a customer in Chandigarh for Rs.6000, then the SGST is applied to this transaction as an intrastate transaction. If the GST rate is 18% on the goods, then GST is equally divided into 9% for the state government and 9% for the central government, the trader will charge Rs. 7080 for the goods. And the collected tax of Rs.1080 is divided into Rs.540 for the central and state government.

Central Goods and Services Tax (CGST):-

This GST tax is applied to intra-state transactions of goods and services. This tax replaces old center taxes like central excise duty, CST, service tax, custom duty, SAD, etc. The collected tax is sent by the trader to the Central Government.

Union Territory Goods and Services Tax (UTGST):-

Similar to SGST, this GST tax is applied to union territory transactions of goods and services which include Andaman and Nicobar, Daman and Diu, Dadra and Nagar Haveli, and Lakshadweep. The collected tax by the trader is sent to the union territory government and after taking their 50% share, another 50% is sent to the Central government. That’s why it is the same as SGST but the state government is replaced by a union territory government.

Structure of GST

The GST structure is divided into 3 major components which are:-

Multi-stage
Destination based
Value added

Multi-stage:-

A product needs to go through multiple stages as a chain from production/manufacture, to later for consumption. This tax is applied at every stage until it is purchased by the consumer. So, the finalized product goes through these multiple stages, starting from:-

Purchase of raw material.
Manufacturing or production of raw materials into finalized products/goods.
Storing the finalized products/goods in a warehouse.
Sell it to wholesalers
Wholesalers sell the products to the retailer
Lastly, the product is sold to the end consumers by the retailer.

This charged tax on each stage from raw material to final product selling to the end consumer is what makes it a multi-stage tax.

Destination based:-

This tax is applied to the item where it is consumed by the end-user, not at the place where it is created which means the location where the item is consumed is the place where the tax is collected.

For example, if a product is manufactured in Delhi and purchased by the end-user in Maharashtra. Then the tax is applied on the point of consumption, which means all the tax revenue goes to Maharashtra, not Delhi.

Value added:-

This tax is applied to every addition made to the item to make it saleable to the end user. For example, a biscuit manufacturing unit of Britannia manufactures a variety of biscuits, and each manufacturing process goes through some stages, that added value to each stage:-

Process the raw material such as flour, sugar, and other materials into a dough for baking into biscuits. This increases the value of the material by making them finalize saleable units.
Biscuits are sent to the warehouse for storage and further processing, like 30 packs of biscuits for the following process, it adds another value addition to the monetary value of the biscuits for saleable.
Now each pack of biscuits gets the logo of the Britannia brand. The Britannia brand labeling adds new value.
Lastly, the biscuits are packed in smaller cartoons to get transported and sold in the retail market, adding the last taxation value.

And that’s how in each stage from raw material to product finalizing and selling to the end-user, the GST is applied on every value addition.

New GST rates in 2023

Here are the new GST rates for 2023 for all goods and services.

S.No.	List of items	Old GST rates	New GST rates
1.	Casino, online, and horse racing	18%	28%
2.	Foods and beverages in cinema halls	18%	5%
3.	Fish soluble paste	18%	5%
4.	Uncooked, unfried, and Extruded Snacks palettes	18%	5%
5.	LD slag	18%	5%
6.	Imitation Zari Thread or Yarn	12%	5%
7.	Cancer-related machine		Exempt
8.	Food for Special Medical Purposes		Exempt
9.	Medicine for rare diseases		Exempt
10.	Washing machine	31.3%	18%
11.	T.V. up to 27 inches	31.3%	18%
12.	Refrigerator	31.3%	18%
13.	Electric appliances	31.3%	18%
14.	LPG stoves	21%	18%
15.	Geyser, Cooler, and Fan	31.3%	18%
16.	Vacuum vessels and flasks	28%	18%
17.	Static converters	28%	18%
18.	LED	15%	12%
19.	Mobile Phones	31.3%	12%
20.	Sewing machine	16%	12%
21.	Pencil Sharpener	18%	12%
22.	Ethyl alcohol that retailed in refineries by mixing it with petrol or motor spirit	18%	5%
23.	Sale of Mentha arvensis similar to Mentha oil	No RCM	Under RCM
24.	Cattle feed such as khanda, churi, chuni, chika, concentrates, and pulse husks.	5%	Nil
25.	Polished and cut diamonds	1.5%	0.25%
26.	Tetrapacks	18%	12%
27.	Tar	18%	5%18%
28.	Importing Diethylcarbamazine (DEC) pills for the National Filariasis Elimination Program at no cost (IGST)	Nil	5%
29.	Ostomy Appliances	5%	12%
30.	Importation of specific defense products by suppliers or private companies for use in defense (IGST)	Nil	Applicable rates
31.	Ropeway transportation of both cargo and person	5%	18%
32.	Orthopedic appliances	5%	12%
33.	The cost of renting a truck or wagon, including fuel	12%	18%
34.	Any type of printed map, including atlases, wall maps, topographical plans, and globes, as well as hydrographic or similar charts	12%	Nil
35.	Cheques, lose or in book form	18%	Nil
36.	Parts of goods of heading 8801	18%	Nil
37.	Passengers who can only fly in economy class to and from Bagdogra and north-eastern states presently	Conditions applied	Nil
38.	Transportation of railroad equipment and supplies by rail or vessel, storage, or warehousing of tax-paying goods like copra, nuts, spices, jaggery, cotton, etc., fumigation of agricultural products in warehouses, services provided by the RBI, IRDA, SEBI, FSSAI, and GSTN, leasing of residential real estate to businesses that have registered for GST, and stem cell preservation services provided by cord blood banks are all examples of such activities.	Rates applicable	Nil
39.	Room rent (excluding ICU) exceeding Rs.5000 per patient day	5%	Nil
40.	Common bio-medical waste treatment facilities for disposing or treating biomedical waste.	12%	Nil
41.	Hotel accommodation costing up to Rs. 1000 per day	12%	Nil
42.	Coaching or training in recreational activities on arts, culture, or sports	Rates applicable	Nil
43.	Petroleum/ Coal bed methane	12%	5%
44.	e-waste	18%	5%
45.	Scientific and technical instruments provided to research institutes funded publicly	Rates applicable	5%
46.	Solar water heaters	12%	5%
47.	Finished, chamois, or composition leathers	12%	5%
48.	Job work for processing of skins, hides leather, making of similar products, and manufacturing of clay brick	12%	5%
49.	Contracts and subcontracts for earthwork work with the federal, state, union territories, and local governments	12%	5%
50.	Air-based atta chakki, a wet grinder, washing, sorting, or grading equipment for seeds and grain pulses, as well as milling or cereal-making equipment, are all examples of Pawan Chakki	18%	5%
51.	Ink for drawing, printing, and writing	18%	12%
52.	Paper knives, cutting blades, pencil sharpeners and their blades, spoons, forks, ladles, etc.	18%	12%
53.	Pumps of different types that are power-driven mainly for handling water	18%	12%
54.	Dairy machinery	18%	12%
55.	Lights and fixtures, LED lamps, etc	18%	12%
56.	Drawing, and marking out instruments	18%	12%
57.	Services by a foreman to chit fund	18%	12%
58.	Contract for construction of roads, bridges, a crematorium, an effluent treatment facility, etc.	18%	12%
59.	Contracting and subcontracting for construction of canals, dams, pipelines, water supply plants, historical sites, educational institutions, hospitals, etc. with the federal, state, and local governments as well as with local authorities	Nil	12%
60.	Railway goods, locomotives, and parts are under Chapter 86	18%	12%
61.	Pens	18%	12%
62.	Metal concentrates and ores	18%	5%
63.	Certain Renewable Energy Devices	12%	5%
64.	Recorded media reproduction and printing for the purposes of publisher’s content	18%	12%
65.	Showing, broadcasting, and licensing of sound recordings, Radio Television programs, and original films	18%	12%
66.	Printed material, catalog, and cards under Chapter 49	18%	12%
67.	Packing containers, boxes, and cartons that are made from paper	18%	12%/18%
68.	Scrap, plastic waste, and Polyurethanes	18%	5%
69.	In case vehicles are attached with retro fitment kits for disabled individuals	5%	Applicable rate
70.	‘Keytruda’ for cancer treatment	5%	12%
71.	IGST that is levied in case goods are sold at the Indo-Bangladesh border	Nil	Applicable rate
72.	Pulse oximeters	12%	5%
73.	Hand sanitizers	18%	5%
74.	Equipment to check body temperature	18%	5%
75.	Furnaces for cremation and their installation	18%	5%
76.	Ambulances	28%	12%
77.	Testing kits	12%	5%
78.	Specified inflammatory diagnostic kits	12%	5%
79.	Medical grade oxygen	12%	5%
80.	Oxygen concentrator or generator	12%	5%
81.	Ventilators	12%	5%
82.	Mak, cannula, or helmet	12%	5%
83.	BiPAP machine	12%	5%
84.	High flow nasal cannula device	12%	5%
85.	Tocilizumab	5%	Nil
86.	Amphotericin B	5%	Nil
87.	Heparin and other anti-coagulants	12%	5%
88.	Remdesevir	12%	5%
89.	Any other drugs recommended by the Ministry of Health	NA	5%
90.	Handmade matches	12%	5%
100.	Other handmade matches	12%	18%
101.	Aircraft MRO services	5% along with full ITC	18%
102.	Sacks of polythene and polypropylene	18%	12%
103.	State-owned lotteries	28%	12%
104.	State authorized lotteries	28%	28%
105.	Woven and non-woven fabrics	18%	12%
106.	Plates and cups made of tree products	Nil	5%
107.	Caffeinated beverages	28% + 12%	18%
108.	Supplies of Railways wagons and coaches (without the refund of accumulated ITC)	12%	5%
109.	Outdoor catering (without the ITC)	5%	18%
110.	Diamond Job work	1.50%	5%
111.	Other Job work	12%	18%
112.	Hotels with Room Tariff of Rs.7501 and above	18%	28%
113.	Hotel with Room Tariff from Rs 1001 to Rs 7500	12%	18%
114.	Woven or non-Woven polyethylene packaging bags	12%	18%
115.	Marine fuel	5%	18%
116.	Almond Milk	18%	–
117.	Slide fasteners	12%	18%
118.	Wet grinders (consisting of stone as a grinder)	5%	12%
119.	Dried Tamarind	Nil	5%
120.	Semi-precious stones – cut and polished	0.25%	3%
121.	Specified goods for petroleum operation under Hydrocarbon Exploration Licensing Policy	5%	Applicable rate
122.	Cess on Petrol Motor Vehicles(Capacity of 10 -13 passengers)	15%	1%
123.	Cess on Diesel Motor Vehicles (Capacity of 10 -13 passengers)	15%	3%
124.	Electric chargers	5%	18%
125.	Electric vehicles	5%	12%
126.	Vegetables that are preserved provisionally but are not suitable for immediate consumption	5%	Nil
127.	Cooked or uncooked vegetables which are steamed, frozen, or boiled (branded)	5%	Nil
128.	Music books	12%	Nil
129.	Parts for manufacturing renewable energy devices fall under chapters 84, 85, and 94 of tariff	–	5%
130.	Natural cork	12%	5%
131.	Walking sticks	12%	5%
132.	Marble rubble	18%	5%
133.	Agglomerated cork	18%	12%
134.	Cork roughly squared or debugged	18%	12%
135.	Articles of Natural cork	18%	12%
136.	Movie Tickets worth Rs.100 or less	18%	12%
137.	Premium on Third party insurance on Vehicles	18%	12%
138.	Accessories for Handicapped Mobility Vehicles	28%	5%
139.	Power banks	28%	18%
140.	Movie tickets worth more than Rs.100	28%	18%
141.	Video game consoles, equipment used for Billiards and snooker, and other sport-related items of HSN code 9504	28%	18%
142.	Retreated and used pneumatic Rubber Tyres	28%	18%
143.	Color Television Sets and monitors up to “32 inches”	28%	18%
144.	Digital and video camera recorders	28%	18%
145.	Pulleys, transmission shafts. Cranks, and gearboxes under HSN 8483	28%	18%
146.	Reduction of tax rates on Air travel of pilgrims	28%	18%

The GST system helps the central government to achieve its “one nation, one tax” goal by implementing a uniform taxation system that curbs tax evasion in India. This also helps traders and businesses to pay one direct tax rather than paying several different indirect taxes. While the tax can vary between different goods and services according to materials, place of origin, selling market, etc.

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Gagandeep Singh

Hi! I am a Content Writer and Copywriter with interest in import export, healthcare and many other industries. With the knowledge that I've earned so far, I can write content that can practically educate the audience.

Types of GST

Structure of GST

New GST rates in 2023

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Gagandeep Singh