Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Saturday, November 5, 2016

GST Rate Slabs –5%,12%,18% and 28%

On 4th November,2016 the much awaited 4 tier GST rate slab announced by GST Council. The GST Council  has categorized the rates as below:

FOUR TIER GST RATES

ü     Lowest Slab for essentials @5% – Food items and other mass essentials which is 1% lesser than the proposed.
ü     Standard or Substantial Slab rate @ 12% – For Substantial Goods & Services.
ü     Middle Slab @ 18% – Rest Of Goods & Services which are not covered in essentials and substantial goods
ü     Highest for luxury and demerit goods slab @28% – Luxury & Demerit goods.

Other Important points :

Ø  Cess will be levied on products like Luxury Cars, Tobacco Products, Aerated Drinks etc.

Ø   50% of the goods comprised in the Consumer Price Index would be “Zero Rated”. “Zero Rated” goods mean that there would be no tax on the supply of those goods but Input Tax Credit (ITC) would be eligible for setoff  by the assessee either to discharge tax on other taxable goods or claimed as refund. However such goods in  “Zero rated” goods would be exempt having no set off of credit or  that the supply is exempt and Input Tax Credit is eligible for setoff is not specifically made clear for further classification or not.


Ø  The taxable services would be split between 12% and 18% that will make most of the services costlier than present.

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