New GST Rates In India 2023 (Item Wise and HSN Code)
Every Indian business and consumer needs to know the latest GST rates list. GST rate revisions impact industries, trade organizations, end consumers, and the economy.
As a result of this change, everyone evaluates their position.
This article explains the new GST rates in India in 2023 in detail.
New GST Rates in India 2023 (Item Wise and HSN Code)
GST Councils meet periodically in India to discuss and revise GST slabs. Luxury supplies are generally subject to a higher GST rate than essential supplies.
GST will definitely boost the economic growth of India as it has encouraged a shift from an informal to a formal economy.
Across the entire production and distribution value chain, Indian products are competitive both domestically and internationally.
Over 1300 goods and 500 services are categorized by the GST council into four tax slabs of 5%, 12%, 18%, and 28%.
Recently on 18th July 2022, the 47th GST Council Meeting was held.
The GST rates for commonly-used consumable products are given in the below table:–
|0%||Lassi||Children’s Drawing & Colouring Books|
|0%||Unpacked Foodgrains||Unbranded Atta|
|0%||Unpacked Paneer||Unbranded Maida|
|0%||Unbranded Natural Honey||Prasad|
|0%||Fresh Vegetables||Palmyra Jaggery|
|0%||Salt||Phool Bhari Jhadoo|
|5%||Domestic LPG||Roasted Coffee Beans|
|5%||PDS Kerosene||Skimmed Milk Powder|
|5%||Cashew Nuts||Footwear (< Rs.500)|
|5%||Milk Food for Babies||Apparel (< Rs.1000)|
|5%||Fabric||Coir Mats, Matting & Floor Covering|
|5%||Coal||Mishti/Mithai (Indian Sweets)|
|5%||Life-saving drugs||Coffee (except instant)|
|12%||Fruit Juice||Preparations of Vegetables, Fruits, Nuts, or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly|
|12%||Packed Coconut Water||Umbrella|
|18%||Hair Oil||Capital goods|
|28%||Small cars (+1% or 3% cess)||High-end motorcycles (+15% cess)|
|28%||Consumer durables such as AC and fridge||Beedis have NOT been included here|
|28%||Luxury & sin items like BMWs, cigarettes, and aerated drinks (+15% cess)|
What are new changes in GST?
On 13th July 2022, the Government of India issued nine Central Tax (Rate) notifications. These changes are applicable from 18th July 2022. Below are the new changes which are done in the council meeting:
- New HSN Codes from 2022- Three notifications were issued to align HSN Codes.
- GST rates changes to amend the inverted tax structure-
- For Textiles, GST increased to 12% with HSN codes 51, 52, 53, 54, 55, 56, 58, 60, 63, and 64 (woven as well as knitted fabrics, knitting, saree falls, embroidery works, curtains bed linen, home furnishings and also dyeing services).
- For Footwear with HSN code 64 valued at or below Rs.1,000 per pair.
- e-Commerce operators to pay GST for passenger transport and restaurant services-
Now e-Commerce operators will become liable to pay GST for the cab services, carrier services, etc provided for the transportation of passengers. Further, the transport of passenger service will also include omnibuses and other motor vehicles. Further, cloud kitchen e-commerce operators providing the supply of food will be liable to pay GST.
- Other GST rate changes-
- ‘Carriages for disabled persons are exempted under HSN code 8713 earlier taxed at 12%. Later, the same notification was removed in respect of Information Technology software’ from entry 452P earlier charged 18% GST.
- ‘Governmental Authority or a Government Entity’ removed from serial 3 being construction services.
- Key changes are carried out to the description of goods chargeable to GST.
- Key changes are carried out to the description of goods exempt from GST.
- A concessional GST rate of 12% applies to HSN code chapter 4414 instead of earlier 44140000 covering wooden frames having paintings, photos, mirrors, etc. Also, a concessional GST rate of 12% applies to HSN code 7419 80 instead of earlier 741999 covering art ware related to brass, copper, or its alloys.
In order to correct the inverted tax structure, the exemption list was pruned and inverted tax rates were set.
What becomes Costlier and Cheaper
|Description of goods or services||Old Rate||New Rate|
|Cut and Polished diamonds||0.25%||1.50%|
|Tetra Pack (Aseptic Packaging Paper)||12%||18%|
|Tar (From coal, or coal gasification plants, or producer gas plants and coke oven plants)||5%/18%||18%|
|Import of tablets called Diethylcarbamazine (DEC) free of cost for the National Filariasis Elimination Programme (IGST)||5%||Nil|
|Import of particular defense items by private businesses or suppliers for end-consumption of Defence (IGST)||Applicable rates||Nil|
|Orthopedic appliances such as intraocular lenses, artificial parts of the body, splints and other fracture appliances, other appliances which are worn or carried, or body implants, to compensate for a defect or disability||12%||5%|
|Transport of goods and passengers by ropeways (with ITC of services)||18%||5%|
|Renting of truck or goods carriage including the fuel cost||18%||12%|
Pruning of GST exemptions
|Description of goods or services||Old Rate||New Rate|
|Earlier fully exempted, now withdrawn|
|Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed||Nil||12%|
|Cheques, lose or in book form||Nil||18%|
|Parts of goods of heading 8801||Nil||18%|
|Air transportation of passengers to and from north-eastern states and Bagdogra is now restricted to economy class||Nil||Condition added|
|Transportation by rail or a vessel of railway equipment and material, storage or warehousing of commodities attracting tax such as copra, nuts, spices, jaggery, cotton, etc, fumigation in a warehouse of Agri produce, services by RBI, IRDA, SEBI, FSSAI, and GSTN, renting of a residential dwelling to GST-registered businesses, and services by the cord blood banks for preserving stem cells||Nil||Applicable rate|
|Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITC||Nil||5%|
|Common bio-medical waste treatment facilities for treating or disposing of biomedical waste shall be taxed with the availability of ITC, like CETPs||Nil||12%|
|Hotel accommodation priced up to Rs.1,000 per day||Nil||12%|
|Training or coaching in recreational activities on arts or culture, or sports other than by individuals||Nil||Applicable rate|
|Earlier partially exempted, now withdrawn|
|Petroleum/ Coal bed methane||5%||12%|
|Scientific and technical instruments to publicly funded research institutes||5%||Applicable rate|
Correction of Inverted Tax Structure
|Description of goods or services||Old Rate||New Rate|
|Solar water heaters and systems||5%||12%|
|Prepared or finished leather or chamois leather or composition leather||5%||12%|
|Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing||5%||12%|
|Earthwork works contracts and sub-contracts to the Central and state governments, Union Territories, and local authorities||5%||12%|
|Pawan Chakki being an air-based atta chakki, wet grinder, cleaning, sorting, or grading machines for seeds and grain pulses, and milling machines or cereal making machines, etc;||5%||18%|
|Ink for drawing, printing, and writing||12%||18%|
|Knives with paper knives, cutting blades, pencil sharpeners and their blades, skimmers, cake servers, spoons, forks, ladles, etc||12%||18%|
|Centrifugal pumps, submersible pumps deep tube-well turbine pumps, and bicycle pumps that are power-driven mainly for handling water||12%||18%|
|Milking machines and dairy machinery, cleaning, sorting, or grading machines and its parts for eggs, fruit or other agri produce||12%||18%|
|Lights and fixture, LED lamps, their metal printed circuits board||12%||18%|
|Marking out and drawing instruments||12%||18%|
|Services by foreman to chit fund||12%||18%|
|Works contract for railways, metro, roads, bridges, effluent treatment plant, crematorium, etc.||12%||18%|
|Works contract and sub-contract to the Central and state governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals, etc||12%||18%|
|Refund of accumulated ITC for edible oils and coal is disallowed.|
What is the HSN code for 18% GST?
The HSN code stands for “Harmonized System of Nomenclature”. It helps in the systematic classification of goods all over the world.
HSN code is a 6-digit uniform code that is accepted worldwide that classifies 5000+ products.
The main purpose of HSN is to bring uniformity in the classification of goods and facilitates international trade.
What is the HSN code for 12% GST?
Please find the list of 12% GST items with HSN Code:
What are footwear HSN code and GST rate?
Below is the table of footwear HSN code and GST rate
|HSN Code||Description||CESS (%)||Rate|
|6402||Other footwear with rubber or plastic outer soles and uppers – sports footwear||0||5% 18%|
|640212||Ski boots, cross-country ski boots, snowboard boots||0||5% 18%|
|64021210||Other footwear sports footwear with rubber or plastic outer soles and uppers: Ski boots, cross-country ski boots, and snowboard boots: made of rubber.||0||5% 18%|
|64021290||Other footwear sports footwear with rubber or plastic outer soles and uppers: Ski boots, cross-country ski boots, snowboard boots: Other||0||5% 18%|
|64021910||Other footwear sports footwear with rubber or plastic outer soles and uppers: other: made of rubber.||0||5% 18%|
|64021990||Other footwear sports footwear with rubber or plastic outer soles and uppers||0||5% 18%|
|640220||A shoe with a strap attached to the sole by an upper strap or plug||0||5% 18%|
|64022010||Other footwear with rubber or plastic outsoles and uppers footwear with upper straps or straps attached to the sole with a plug: made of rubber||0||5% 18%|
|64022090||Other footwear with rubber or plastic outsoles and uppers footwear with upper straps or straps attached to the sole with plug: Other||0||5% 18%|
|64023010||Other footwear with rubber or plastic outsoles and uppers Other footwear with metal toe caps: made of rubber||0||5% 18%|
|64023090||Other footwear with rubber or plastic outsoles and uppers Other footwear with metal toe caps: Other||0||5% 18%|
|640291||Cover your ankles||0||5% 18%|
|64029110||Other footwear with rubber or plastic outer soles and uppers Other footwear: Ankle Coverage: made of rubber||0||5% 18%|
|64029190||Other footwear with rubber or plastic outer soles and uppers Other footwear: Ankle Coverage: other||0||5% 18%|
|64029910||Other footwear with rubber or plastic outer soles and uppers Other footwear: other: made of rubber||0||5% 18%|
|64029990||Other footwear with rubber or plastic outer soles and uppers Other footwear: other:||0||5% 18%|
What is GST state code list?
The term ‘GST state code’ refers to the special code given by the government to each state and union territory. Each state and union territory has a unique number that represents it. The Goods and Services Tax Identification Number contains the GST State Code (GSTIN). Every GST-registered taxpayer is given a unique 15-digit alphanumeric identification number.
|S. no||State Name||State Code (GST)||Alpha Code|
|1||Andaman and Nicobar Islands||35||AN|
|3||Andhra Pradesh (new)||37||AD|
|9||Dadra and Nagar Haveli||26||DN|
|10||Daman and Diu||25||DD|
|16||Jammu and Kashmir||1||JK|
Frequently Asked Questions (FAQ):-
What is the GST rate on furniture?
Articles of furniture would be charged tax at the rate of 28%, except for wooden furniture.
Is GST 12% or 18 %?
GST Council revises the rate slab of goods and services periodically. GST rates in India are divided into four slabs: they are 5%, 12%, 18%, & 28%.
How much is GST on a saree?
On sarees, GST is 5%.
What is the GST for oil?
On normal and blended edible oil, GST levied is 5%. And other oils like fish oil, lard oil, oleo oil, etc are there in a 12% slab.
What is the GST rate on rice?
When packaged, rice and daal atta will be subject to 5% GST.
Is GST applicable on milk?
Fresh milk and pasteurized milk are fully exempted from GST.
The sale of curd, lassi, buttermilk, and paneer in non-packaged or labeled forms is also exempt from GST.
Are eggs GST-free?
Yes, eggs are exempted from GST.
Is there GST on ghee?
GST of 12% is charged on Ghee, Butter, and other fats.
How much GST is on food?
GST on food items varies from 5%, 12%, and 18% basis establishment type and location of restaurants or food service providers among others.
Is GST 12% on fabric?
Central Board of Indirect Taxes and Customs (CBIC) revised the rates on garments, textiles, and footwear from 5% to 12% from January 1, 2022.
When did GST become 7%?
With effect from 1 July 2007, the GST rate would be increased to 7%.
With the increase in GST, Singaporeans received an offset package.
When new GST rates will be applicable?
The new GST rates will be applicable from 18th July 2022.
What is HSN code of besan?
HSN Code of besan is 11063090.
What is HSN code of maida?
HSN Code of maida is 11010000.
What is HSN code for restaurant food items?
HSN Code is 996331 for services provided by restaurants, cafes, and similar catering establishments such as takeout, room service, and door delivery.
We hope this article will help you understand and give detailed information on New GST Rates in India 2022.
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