HSN Codes and GST rates for different products
The government has fixed and issued the applicable GST rates for various taxable goods and services under the new GST regime. The GST rates of different commodities are decided based on their HSN codes. Read this article to find out more about HSN codes and the list of GST rates for different products and services.
What are HSN (and SAC) Codes in GST?
HSN codes are the unique codes assigned to each product based on its category or chapter. These codes are in accordance with the Harmonized System of Nomenclature, which is a multipurpose international product identification system developed by the World Customs Organization. Use of HSN codes ensures that GST practices are in sync with the international product nomenclature standards.
Each taxable service under GST is assigned a unique SAC or Service Accounting Code for identification purpose.
It is mandatory for businesses (with annual turnover more than 1.5 crores) to mention relevant HSN/SAC codes for their commodities when filing tax returns. You can check the HSN code for your goods on the internet or on GST Portal.
GST Rate List
The government, in association with the GST Council, has defined GST rates for each category of taxable products and services. Check below the list of commodities with their GST rates.
As you probably already know, there are four tax slabs in GST – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Besides that, some items have been exempted from GST while others are kept under zero GST slab. Some other items like gold and rough diamonds have separate tax rates.
Goods & Services in 5% tax slab
- Most food items including packaged food items, fish fillet, cream, branded paneer, frozen vegetables, coffee, tea, skimmed milk powder, spices, rusk, sabudana, pizza bread, cashew nut, raisin, cashew nut in shell, ice and snow
- Clothing items below Rs 1000 and footwear below Rs 500
- Some fuel items like bio gas, coal and kerosene
- Health related items including medicine, insulin and stent
- Some other items like agarbatti (incense sticks), postage stamps/ revenue stamps, kites, stamp-post marks, lifeboats and first-day covers are in this slab
Transport services like railways and air travel (economy class) and small restaurants are in the 5% category.
Gold will be taxed at 3% while rough diamonds will attract 0.25% tax.
12% GST Rate list
- Frozen meat products, cheese, ghee, butter, packaged dry fruits, sausage, fruit juices, animal fat and namkeen,
- Cutlery items like Spoons, ladles, skimmers, forks, cake servers, tongs and fish knives
- Ayurvedic medicines, diagnostic kits and reagents
- Utility items like tooth powder, sewing machine, spectacles and umbrella,
- Indoor game items like cards, carom board, chess board, ludo and other board games,
- Apparel above Rs 1000
Non-AC hotels, state-run lottery, fertilisers, business class air ticket and work contracts are also in this GST slab.
Commodities in 18% GST Slab
- Some other food items including biscuits, pasta, cornflakes, flavoured refined sugar, preserved vegetables, jams, pastries and cakes, sauces, ice cream, instant food mixes, mineral water, soups, curry paste, salad dressings, mixed condiments, mayonnaise and mixed seasonings
- Footwear above Rs 500
- Printed circuits, speakers and monitors, printers (other than multi-function printers), camera, electrical transformer, optical fiber and CCTV
- Bidi leaves
- Envelopes, sanitary napkins, tissues, notebooks, kajal pencil sticks
- Steel products, headgear and its parts, weighing machinery (other than electric or electronic machines), aluminium foil, bamboo furniture, swimming and paddling pools are all kept in the 18 per cent tax slab.
Services like AC hotels that serve liquor, IT services, branded garments, telecom services and financial services will also be taxed at 18 per cent.
28% Tax Slab List
- Other remaining food item including chewing gum, chocolate not containing cocoa, molasses, waffles and chocolate coated wafers, aerated water and pan masala, Bidi
- Common personal care items like deodorants, after shave, hair shampoo, shaving creams, dye and sunscreen
- Paint, ceramic tiles and wallpaper
- Water heater, electric and electronic weighing machine
- Dishwasher, washing machine, vacuum cleaner
- Shavers and hair clippers
- ATM and vending machines have been put in this slab
You can check rates of any goods or services at https://cbec-gst.gov.in/gst-goods-services-rates.html
Tax exempted Goods & Services
The following products and services have been exempted from tax under GST regime.
- Most of the basic food items including fresh meat, fish, eggs, milk, chicken, butter milk, curd, fresh fruits and vegetables, natural honey, flour, besan, all kinds of salt, jaggery, bread and hulled cereal grains
- Fashion items like bindi, sindoor, Palmyra, kajal, human hair and bangles
- Drawing or colouring books, judicial papers, stamps, printed books, newspapers, etc.
- And some other items including jute and handloom, hoof meal, horn meal, Bones and horn cores, bone grist and bone meal are free from GST.
Grandfathering service and hotels and lodges with rates below Rs 1,000 are also GST-exempted.
The above lists might be missing some items. You can search the internet for GST rate of your specific products/services if not given in these lists.
The GST rates of 19 services were revised after a meeting held by the GST Council on Saturday, August 5, 2017. The tax rate on job work in the textile sector has been reduced to 5% from the previous 8% rate. The GST rate for agriculture services related to post-harvest and storage has been decreased from 18% to 12%. The rate for planetarium services and some tractor parts has also been lowered from 28% to 18%. The newspaper and book printing services will now attract a 5% GST if they use their own paper, and 12% GST if they buy paper from outside. Cab-renting services are now in 12% slab rate but with no input tax credit.
The upcoming FIFA Youth World Cup 2017 (scheduled from October 6 to October 28, 2017, in Goa, India) has been exempted from GST.