New GST Rates 2023 – All Goods and Services in India

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)
  1. 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. 

  1. 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. 

  1. 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. 

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. After taking their half, the state government sends the other half to the central government. 

  1. 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
  1. 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. 

  1. 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.

  1. 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 racing18%28%
2.Foods and beverages in cinema halls18%5%
3.Fish soluble paste18%5%
4.Uncooked, unfried, and Extruded Snacks palettes18%5%
5.LD slag18%5%
6.Imitation Zari Thread or Yarn12%5%
7.Cancer-related machineExempt
8.Food for Special Medical Purposes Exempt
9.Medicine for rare diseasesExempt
10.Washing machine31.3%18%
11.T.V. up to 27 inches31.3%18%
13.Electric appliances 31.3%18%
14.LPG stoves21%18%
15.Geyser, Cooler, and Fan31.3%18%
16.Vacuum vessels and flasks28%18%
17.Static converters28%18%
19.Mobile Phones31.3%12%
20.Sewing machine16%12%
21.Pencil Sharpener18%12%
22.Ethyl alcohol that retailed in refineries by mixing it with petrol or motor spirit18%5%
23.Sale of Mentha arvensis similar to Mentha oil No RCMUnder RCM
24.Cattle feed such as khanda, churi, chuni, chika, concentrates, and pulse husks. 5%Nil
25.Polished and cut diamonds1.5%0.25%
28.Importing Diethylcarbamazine (DEC) pills for the National Filariasis Elimination Program at no cost (IGST)Nil5%
29.Ostomy Appliances5%12%
30.Importation of specific defense products by suppliers or private companies for use in defense (IGST)NilApplicable rates
31.Ropeway transportation of both cargo and person 5%18%
32.Orthopedic appliances5%12%
33.The cost of renting a truck or wagon, including fuel12%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 880118%Nil
37.Passengers who can only fly in economy class to and from Bagdogra and north-eastern states presentlyConditions 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 day12%Nil
42.Coaching or training in recreational activities on arts, culture, or sportsRates applicableNil
43.Petroleum/ Coal bed methane12%5%
45.Scientific and technical instruments provided to research institutes funded publiclyRates applicable 5%
46.Solar water heaters12%5%
47.Finished, chamois, or composition leathers12%5%
48.Job work for processing of skins, hides leather, making of similar products, and manufacturing of clay brick12%5%
49.Contracts and subcontracts for earthwork work with the federal, state, union territories, and local governments12%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 Chakki18%5%
51.Ink for drawing, printing, and writing18%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 water18%12%
54.Dairy machinery18%12%
55.Lights and fixtures, LED lamps, etc18%12%
56.Drawing, and marking out instruments 18%12%
57.Services by a foreman to chit fund18%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 authoritiesNil12%
60.Railway goods, locomotives, and parts are under Chapter 8618%12%
62.Metal concentrates and ores18%5%
63.Certain Renewable Energy Devices12%5%
64.Recorded media reproduction and printing for the purposes of publisher’s content18%12%
65.Showing, broadcasting, and licensing of sound recordings, Radio Television programs, and original films18%12%
66.Printed material, catalog, and cards under Chapter 4918%12%
67.Packing containers, boxes, and cartons that are made from paper18%12%/18%
68.Scrap, plastic waste, and Polyurethanes18%5%
69.In case vehicles are attached with retro fitment kits for disabled individuals 5%Applicable rate
70.‘Keytruda’ for cancer treatment5%12%
71.IGST that is levied in case goods are sold at the Indo-Bangladesh borderNilApplicable rate
72.Pulse oximeters12%5%
73.Hand sanitizers18%5%
74.Equipment to check body temperature18%5%
75.Furnaces for cremation and their installation18%5%
77.Testing kits12%5%
78.Specified inflammatory diagnostic kits12%5%
79.Medical grade oxygen12%5%
80.Oxygen concentrator or generator12%5%
82.Mak, cannula, or helmet12%5%
83.BiPAP machine12%5%
84.High flow nasal cannula device12%5%
86.Amphotericin B5%Nil
87.Heparin and other anti-coagulants12%5%
89.Any other drugs recommended by the Ministry of HealthNA5%
90.Handmade matches12%5%
100.Other handmade matches12%18%
101.Aircraft MRO services5% along with full ITC18%
102.Sacks of polythene and polypropylene18%12%
103.State-owned lotteries28%12%
104.State authorized lotteries28%28%
105.Woven and non-woven fabrics18%12%
106.Plates and cups made of tree productsNil5%
107.Caffeinated beverages28% + 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 work1.50%5%
111.Other Job work12%18%
112.Hotels with Room Tariff of Rs.7501 and above18%28%
113.Hotel with Room Tariff from Rs 1001 to Rs 750012%18%
114.Woven or non-Woven polyethylene packaging bags12%18%
115.Marine fuel5%18%
116.Almond Milk18%
117.Slide fasteners12%18%
118.Wet grinders (consisting of stone as a grinder)5%12%
119.Dried TamarindNil5%
120.Semi-precious stones – cut and polished0.25%3%
121.Specified goods for petroleum operation under Hydrocarbon Exploration Licensing Policy5%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 chargers5%18%
125.Electric vehicles5%12%
126.Vegetables that are preserved provisionally but are not suitable for immediate consumption5%Nil
127.Cooked or uncooked vegetables which are steamed, frozen, or boiled (branded)5%Nil
128.Music books12%Nil
129.Parts for manufacturing renewable energy devices fall under chapters 84, 85, and 94 of tariff5%
130.Natural cork12%5%
131.Walking sticks12%5%
132.Marble rubble18%5%
133.Agglomerated cork18%12%
134.Cork roughly squared or debugged 18%12%
135.Articles of Natural cork18%12%
136.Movie Tickets worth Rs.100 or less18%12%
137.Premium on Third party insurance on Vehicles18%12%
138.Accessories for Handicapped Mobility Vehicles28%5%
139.Power banks28%18%
140.Movie tickets worth more than Rs.10028%18%
141.Video game consoles, equipment used for Billiards and snooker, and other sport-related items of HSN code 950428%18%
142.Retreated and used pneumatic Rubber Tyres28%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 848328%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.