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Detail about gst rates on services

GST Rates on Services (Complete List)

GST is a destination tax applied to all transactions involving the provision of goods and services for consideration. The GST regime levies GST rates on the production, sale, and consumption of goods and services at the country level.

It is a comprehensive tax regime that applies to both goods and services collected on the value added at each stage of the supply chain. Further, GST paid on procurement of goods and services can be set off against that payable on the supply of goods and services.

This article is a complete list of GST tax rates for services.

What is GST Rate Slab?

A tax slab is a collection of goods and services taxed at a particular rate. GST slabs are set by the GST Council. GST council covers over 1300 products and nearly 500 services. 

India has five GST rates for a range of goods and services:

     ➜  0%

     ➜  5%

     ➜  12%

     ➜  18%

     ➜  28%

Luxury items generally have higher GST rates, whereas necessities have lower GST rates. All transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services are subject to GST rates. The GST rate does not apply to the sale of alcohol for human consumption.

What are the Items under 5% GST?

The lowest rate applies to daily necessities and household necessities. Services with a 5% GST tax rate are listed in the table below.

Sl.No                             Description of Services
1Train service that transports passengers in first-class or air-conditioned coaches
2Passengers transported using (a) air-conditioned contract carriage other than a motor cab; (b) air-conditioned stage carriage; and (c) radio taxi.
3Air transport of passengers embarking or terminating at a Regional Connectivity Scheme Airport
4Air travel of passengers in economy class
5Renting a motor cab where the cost of fuel is charged to the service recipient as part of the consideration
6Transport of goods – (i) by rail, (ii) in a vessel
7Services provided by the goods transport agency (GTA) for the transportation of goods, including used household goods for personal use
8A scheduled airline leasing aircraft for scheduled operations
9Selling of advertising space in print media
10Supply of tour operator’s services
11Job work services related to (a) newspaper printing (b) textile yarns (other than man-made fibers) and textile fabrics (c) cut and polished diamonds, precious and semi-precious stones, or plain and studded jewelry made of gold and other precious metals, (d) printing of books (including Braille books), journals, and periodicals; (e) Processing of hides, skins, and leather 
Items under 5% GST

What Product is 12% GST?

Here is the GST rate table for secondary essentials, which mainly include processed food, cooking utensils, and other similar items:

S.No                        Description of Services
1Food/drinks supply in a restaurant that does not have air conditioning or central heating at any time of year and does not have a liquor license
2Accommodation in commercial buildings used for residential or lodging purposes, such as hotels, motels, guest houses, clubs, campgrounds, or other establishments, with per room per day rates of 1000 or more but less than 2500
3Air travel by passengers in classes other than economy
4Rail transportation of goods in containers by anyone other than Indian Railways.
5Services offered by the chit fund foreman in relation to chit
6Transferring an Intellectual Property (IP) right temporarily or permanently, or allowing its use or enjoyment with regard to goods other than Information Technology Software.
7Constructing a complex, a building, a civil structure, or a portion thereof, to sell it to a buyer, fully or partially (the value of land is deemed to be one-third of the total amount charged for such supplies)
Products with 12% GST

What Product is 18% GST?

The 18% GST rate applies to essential items. If you’ve been wondering what percentage of GST applies to some of your most desired products/services, this section has it all.

S.NO                    Description of Service
1Food and beverage service in a restaurant with a liquor license
2Food/drinks supply in a restaurant with air conditioning or central heating at any time of year
3Food and beverage supply for outdoor catering
4Accommodation in lodging establishments such as hotels, motels, guest houses, clubs, campgrounds, or other businesses where per day per room rate is Rs. 2500 or more but less than Rs. 7500
5Bundled service consisting of the supply of food or any other human consumption item or any drink in a premise (including a hotel, convention center, club, pandal, shamiana, or any other place specially arranged for the organization of a function) in conjunction with the rental of such premises.
6Admission or access to the circus, and Indian classical dance, including folk dance, theatrical performance, and drama are all services provided.
7Composite supply of Works contract as defined in clause 119 of section 2 of CGST Act
8Services for admission to cinematograph film exhibitions where the price of the admission ticket is RS.100 or less
9Other services not specifically mentioned elsewhere
Products with 18% GST

What Product is 28% GST?

GST percentage for most luxury items is set at the highest standard rate of 28%. However, some of these items are subject to an additional charge, known as cess, in addition to GST slab rates. 

S.NO                            Description of Service
1Accommodation in hotels, including those with star ratings of five stars or higher, inns, guest houses, clubs, campgrounds, or other commercial places for residents or lodge, with daily room rent of Rs. 7500 and above
2Services for access to amusement facilities or admission to entertainment events, such as cinematic film screenings, theme parks, water parks, joy rides, merry-go-rounds, go-kart racing, casinos, racetracks, ballet, and any sporting event like the Indian Premier League, among others.
3Services offered by a race club in the form of totalizers or a license for bookmakers in such clubs
Products with 28%

Which Item is 3% in GST?

This category includes gold-related items. The following are on the list:

S.NO/ HSN                                              Product
7101Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set; pearls, natural or cultured, temporarily strung for convenience of transport
7105Dust and powder of natural or synthetic precious or semi-precious stones
7106Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form
7107Base metals clad with silver, are not further worked than semi-manufactured
7108Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form
7109Base metals or silver, clad with gold, are not further worked than semi-manufactured
7110Platinum, unwrought or in semi-manufactured forms, or in powder form 
7111Base metals, silver or gold, clad with platinum, not further worked than semi-manufactured
7112Waste and scrap of precious metal or of metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal
7113Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal
7114Articles of goldsmiths’ or silversmiths’ wares and parts thereof, of precious metal or of metal clad with precious metal
7115Other articles of precious metal or of metal clad with precious metal
7116Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic, or reconstructed)
7117Imitation jewelry other than bangles of lac/shellac
711311 10Silver filigree work
7117Handmade imitation jewelry (including natural seeds, beads jewelry, and cardamom garland)
Items with 3% GST

What Services are Exempt from GST?

Exempt from tax refers to the supplies which attract a Nil rate of Tax or which may be wholly exempt from tax and also include non–taxable supplies. 

The Central or State Government is empowered to grant exemption to goods or services from tax, either absolute or conditional, which should be in the public interest on recommendation from the council by way of issue of notification. 

 The following table lists the items that do not fall under any of the GST slab rates:

What is HSN No. in GST?

HSN stands for Harmonized System of Nomenclature. World Customs Organization (WCO) established HSN in 1988. Over 5,000 products can be classified with this 6-digit HSN code.

HSN codes are largely used by dealers and trades. They must use 2-digit, 4-digit, or 8-digit HSN codes based on the following criteria:

  • If business turnover is less than Rs.1.5 crores, HSN codes are not required.
  • If business turnover is between Rs.1.5 Crs to Rs. 5 Crs then, they must adopt 2-digit HSN codes for business trades.
  • If business turnover exceeds Rs.5 crores, they must use 4-digit HSN codes.
  • Import and export transactions, and international trade, require the use of 8-digit HSN codes.

HSN modules fall into different categories:

21 Sections  

99 chapters

1244 headings

5244 subheadings

 The use of HSN codes allows you to save time and money while filing GST. By filling out the HSN codes, you can automate the GSTR.

Frequently Asked Questions(FAQ):

What are the 4 types of GST?

There are Four GST types namely Integrated Goods and Services Tax (IGST), State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), and Union Territory Goods and Services Tax (UTGST).

How is GST calculated?

GST can be calculated using the following formula: :

1.  Add GST:

GST Amount = (Original Cost x GST%)/100

Net Price = Original Cost + GST Amount

2. Remove GST:

GST Amount = Original Cost – [Original Cost x {100/(100+GST%)}]

Net Price = Original Cost – GST Amount.

Is GST required below 40 lakhs?

For goods: GST is not required, as the threshold turnover for goods is 40 lakhs,

For services: GST is required if turnover is 20 lakhs or above.

What is the minimum turnover for GST?

GST is applicable when your turnover in a financial year exceeds Rs. 20 lakhs and Rs 10 lakhs for some special category states.

Is GST compulsory for small businesses?

Yes, all small businesses should register for GST, as it is mandatory under the GST Act

Wrapping up

This article provides a detailed explanation of GST rates on services. Rates vary according to the item and other relevant factors. So, if you expect to get services at a lower price because of GST, be aware that some services may cost more under the GST regime.

 We did our best to make all service rates available. Please leave any questions or comments in the section below.

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