some facts about GST applicability in India

compare gst rates with vatGST—the Final Rollout

Some facts about GST applicability in India

On The Midnight of 30th June 2017, President Sh. Pranav Mukherjee and Prime minister sh Narendra Modi ring the Bell of GST. The historic Central Hall of Parliament is the Witness of this Tax revolution

Welcome to the New India of GST. Goods and service tax is applicable to all eligible Tax Payers.

Nation is still involved in the advantages and disadvantages of GST. The government had done his work.

GST starts with the five slab of rates of tax.


Now the time is to Learn it, accept it

“Tell me and I forget. Teach me and I remember. Involve me and I learn.”

  • Benjamin Franklin

This is very much true. The more you are involved in something the more you are interested in it. Someone tells you and go away.

After few days it is destined that you will forget. But if someone teaches you something it lasts in your memory for a longer duration. But if the person is involved in an activity then he gets to learn.

After demonetization, GST will be next step of government which involves entire nation. The entire nation will be playing their role. They will get to learn about GST. The entire nation is and will be involved in learning the importance of tax.

This will be compilation of different forms of direct and indirect taxes. So if anyone poses a question in front of a teen then they will easily answer it. Some of the products might face a sharp drop in rates while others might face price hike after GST being implemented on 1st July. GST is considered very much important.

As one day away from GST implementation. Implementation of GST is expected to be a great step.  This GST will bind entire India under a single tax unit. Rates of GST in India

GST is considered India’s biggest tax reformation since India’s independence. It will rollout from 1st July 2017. The historic Central Hall of Parliament will be hosting a midnight session on 30th June in order to launch the new tax regime.

It was introduced as the Constitution (One Hundred and Twenty Second Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill.

GST is touted as a single way to revolutionize India’s indirect tax regime by being a more efficient system.

Some Facts about Gst applicability in India on Employment

This GST will not only bind entire nation under one tax but it is also expected in generating employment.


There is a buzz that this GST might require a good number of people for proper functioning. It is expected to generate around 1 lakh employment. Companies are hiring to meet the required demand.

ASPs—GST has resulted in a number of entities. One such an entity is “Applicatio


n Service Providers” or ASPs. This will use selling and purchasing of data from taxpayers and converting them into GST returns for online filing.

Some facts about GST applicability in India


Another such entity is GSPs, GST Service Provider. This is also one such entity. This will help businesses in getting registered, and perform necessary work associated with technological work.

For helping out public with GST work companies are becoming service providers. These will help businesses registration, uploading electronic invoices and files on the technological platform, and plans to leverage its network. These entities will help in tackling GST in a better way.

There are a good number of terms associated with GST.

We will look into some of them in details. Such as:-

Address on record is the address of the recipient as available in the records of the supplier.

Agent means a person who carries out the business of supply or receipt of goods or services on behalf of another.

Aggregate turnover is that aggregated value of all the taxable supplies, exempted supplies, exports of goods and/or services and supplies within the states of a person having the same PAN. This must be computed on all India basis and excluding taxes which are charged under CGST Act, SGST Act and IGST Act, as the situation may be.

CGST is also term which means the tax levied under the Central Goods and Services Tax Act, 2016. Appropriate Government is the Central Government in the case of IGST and CGST and the State Government in the case of SGST.

Capital goods are those goods whose value will be capitalized in the books of accounts of the person claiming the credit and are used in the course of business.

The Consumer Welfare Fund established under section 51 is the Fund.

There was a good number of questions raised related to real estate. Most of the people are inquiring regarding the prices of apartments. Real estate builders will be getting input tax credit on selling. The builders have paid the required tax in making of the building. So in this way the prices of apartments will be lowered.

It can be conclude that good and bad both can be incurred from this GST. The only thing we all need to do is keep ourselves updated and aware. So that we are not fooled in the name of GST.

Above were some facts about gst applicability in India.  for More information about gst please Visit Gst website

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Compare gst rates with vat

There is a huge difference between earlier and now in GST rates. we compare GST rates with Vat but it is meaningless.

Goods and service tax is consisting of 17 types of taxes and Vat is only one part of the same. I am not getting the Point why people are comparing the GST rates with the Vat and CST rates.

This is true that there will be an impact of Goods and service tax on Product and Services. Few of them will be costlier and other will be cheaper. Whenever such revolution will take place there will always be advantages and disadvantages of GST.

compare gst rates with vat

This revised GST rate is very beneficial for everyone. The discussion on the revised GST is very fruitful.

Let see the changes on it with a comparison between earlier and revised GST.

GST rates on cashew nut earlier it was 12% but now it is only 5%.

GST rates on the preparation of vegetables, fruits, nuts or other parts of plants including murabba, chutney, pickle, jam, jelly etc earlier it was 18% to 12% but now it is only 12%.

Tax rate of GST on Ketchup & Sauces, salad dressings, mustard, mayonnaise earlier it was 18% but now it is 12%.

Bari made of pulses earlier it was 18% but now it is 12%.

Tax Charges after GST on ice and snow change from 12% to 5%,


curry paste, mayonnaise, and salad dressings Tax rate changes from 28% to 18%.

All Types of Salt becomes 0% and earlier it was 5%. This is Important decision in goods and service Tax.

GST on Biogas earlier was 12% and now it is only 5%.

Exercise books and notebooks change from 18% to 12% . These are majorly used by students and offices.

GST on children’s pictures, drawing or colouring books becomes NIL and earlier it was 12%.

GST on human dressed, thinned, bleached, hair or other work earlier it was 28% but now it is NIL means 0%.

Glasses, which uses for spectacles and flint buttons changes from 18% to 12%. Now Specs will be Cheaper.

Important for You

What Are the advantages of GST

GST on semi-precious and rough stones changes from 3% to 2.5%.

GST on Aluminum foil earlier it was 28% but now it is 18%.

Air based Atta chakki or pawan chakki earlier it was 28% but now in revised GST, it is only 5%.

GST on Fixed speed diesel engines changes from 28% to 12%.

Rear tractor tires, tubes, wheel rim, and weighing machine changes from 28% to 18%.

Tax on printers other than multifunction printers GST becomes 18% to 28%.

GST on Ball bearing, parts & related accessories earlier it was 28% but now it is 18%.

GST on Transformers, industrial electronics, and static convertor’s (UPS) changes from 28% to 18%.

Recorder, CCTV, set top box for TV, computer monitor (less than17 inches), winding wires. Tax Rate was 28% now change to 18% in GST India.

GST on Walkie-talkie used by defense, police, and paramilitary forces etc. earlier it was 28% but now 12%.

Baby Carriage tax rate on GST becomes 18% from 28%.

Electrical filaments or discharge lamps earlier was 28% but now it becomes 18%.

GST on Optical Fiber, spectacles, corrective, changes 28% to 12%.

compare gst rates with vat

And in all other things also GST declining from earlier GST’s.

As we, all know goods & services tax (GST) is the main thing that influences businesses, small or large.


Also read:

Indian services GST rates with input tax credit


Indian services gst rates with input tax credit

Indian GST rates with input tax credit or without ITC on different goods and services. Get all GST rates on services with effect from 1st July. The information uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are communicated for general information and will be given effect to through gazette notifications that shall have a force of law. The Council has generally permitted the GST rates for services at Nil, 5%, 12%, 18% and 28% as listed below.

Indian  GST rates with input tax credit on goods and services…

(Input Tax Credit = ITC)

    • 5% GST with ITC of input service put on a transport of goods by rail.
    • 5% with ITC of input service, GST on the transport of passengers by rail (other than sleeper class).
    • 5% GST without ITC on service of goods transport agency in relation to transportation to goods from one place to other excluding household goods for personal use.
    • 5% GST and no ITC On the service of goods transport agency in relation to transportation of second-hand goods or household goods for personal use.Indian gst rates
    • 5% GST with ITC service of input service on transportation of goods in a vessel service provided by a person located in the non-taxable territory to the person located in a non-taxable territory.
    • 5% GST without ITC on Renting of the motorcar and if the fuel cost is bear by the service recipient then GST will apply 18%.
    • 5% GST without Input Tax Credit  on the transport of passenger by- a radio taxi and air-conditioned contract other than motorcar.
    • 5% Indian services gst rates without input tax credit of input on transportation of passenger by air in economy class.
    • 5% GST on conveying of passengers by air, with or without accompanied belongings in a regional connectivity scheme airport.
    • 12% GST on the transport of goods in containers by rail and by any other person other than Indian railways.
    • 12% Indian services gst rates with input tax credit on Renting of hotels, guesthouse, clubs, or other commercial places.

  • 12% GST with full ITC in the supply of foods/ drinks in the restaurant not having a license to serve liquor.
  • 18% GST with full ITC on the supply of food/drinks in the restaurant having the license to serve liquor.
  • 28% GST with full ITC on supply of foods/ drinks in 5-start or above
  • 28% with full ITC on service provided by a race club.
  • 28% with full ITC on gambling.
  • GST on the transfer of the right to use any goods for any purpose for cash is at the same rate of GST and compensation.
  • GST on the transfer of any right in goods or undivided share in goods will charge same rate of GST and compensation as on supply.
  • GST charged on the supply of transfer of title in goods under an agreement. Which specifies that property in goods is GST and compensation as on supply if similar goods.
  • All another service that not specified anywhere GST will be charged 18% with full ITC.

Also Read:

Compare GST rates with vat

click Here For More Information on Indian services gst rates with input tax credit 

what are proposed rates of GST in India?

Rates of GST in India

Another Meeting of GST council was held on 3rd November 2016 for rates of GST in India. This was a fruitful meeting on rates of GST in India. After so many meeting held by GST  council, the Final rates has been fixed.

Rates of GST in India

Goods and Services Tax will help the people to easily trade from one state to another state. The rates of goods will be same in all over India after GST Applied.
People have the question in mind that what are the rates of GST in India.

 So Following are the slab of rates under GST.

  • 0 Percent :On the Exempted goods Like essential items, Grains etc.
  • 5 percent:This Tax rate will be applicable on commonly required goods like cloth etc.
  • 12 percent:This is the standard tax under GST rates slab includes the packaged foods too.
  • 18 percent:All Products which are not covered under 12 percent GST rates will be covered
    under this except Luxury Products.
  • 28 Percent: This is the rates of GST which is applied on luxury and High-class products. Common goods under this category of GST are tobacco, Luxury Cars, alcohol etc.

There will be addition cess applicable to cover the Losses and Compensate it to the states for Five Years: Mr. Arun Jaitley, Finance Minister of India. the government had announced balanced Tax rates of GST in India which has the advantages and disadvantages too. So what is the impact of GST rates on Consumers?

The government had announced balanced Tax rates of GST in India which has the advantages and disadvantages too. So what is the impact of GST rates on Consumers?

Many Products Like tobacco and other Luxury products which are taxed at 40 % inclusive of Excise and Vat will now have to pay 28% of GST. So these Products will be cheaper now.
There is also a tendency that manufacturer will save the Excise but they may increase the rates of product to earn more profit after low rates of GST in India. It will be a negative Impact of GST Rates.

Here are some examples of products which will impact after GST Tax rates:

  • Items like garments and shoes which are now under the slab of 4 percent now taxed fewer than 5% after New rates of GST and there is an impact of 1% costlier to customers.
  • AC’s, washing machines, Fridge, cooking appliances and many other Products will be cheaper as the total GST impact on these will be 28 percent which is now more than that.
  • All the Services may come under the Tax slab of 18% which is costlier by 3% from Now.

The average rate of GST in India is less than 18% which is demanded by all the political Parties. The government is willing to start it from 1st April 2016 for their political Reasons too.

Comment Below to Get more Updates On GST.

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GST Bill Advantages and Disadvantages in India

 GST Bill Advantages and Disadvantages 

we all know that GST Bill in Rajya Sabha is Passed on 3rd August 2016. Now, this Bill is in the process to Make a Law in India after a certain process.  As of Now the Tax rates and the process of it are not Cleared. Therefore India is not cleared about the GST Bill advantages and disadvantages.

once the act will applicable there are many products which will be cheaper. On the other hand, some of the products will be costlier. We have to pay more to purchase those products. Price Factor is the main points why merits and demerits of Gst Bill are in News.

Like all the other things there are some pros and cons of GST bill. This will clarify only after the final draft of the bill. final Draft of the bill will clear after the approval of GST council.  Just wait for some time to come to know what exactly will be the tax rates of GST in India.


GST Bill Advantages and Disadvantages are as follows:

GST Bill Advantages and Disadvantages

Advantages of GST Bill

This model is a single Tax model and Tax on Tax will be removed. Many Indirect Taxes will be merged as Single Tax.

After the implication of Goods and Service Tax act India will be one market.

  All the products and services will be provided at the same price in all the states. As the rate of tax will be same in all over India.This is the Biggest advantages of GST bill in India. After This, the tax is not applicable on manufacturing hand. So for manufacturers, it is easy to grow their business and develop it.

 Now Excise and some other taxes are applicable at the manufacturing Point. After this these will applicable at consumption point.This system will effect the evasion and theft of Tax will be minimized as it is easy to track. This may be the demerit of GST for Tax Evaders.

Advantages of GST to Citizens:

  • Simplified and Transparent tax system to all
  • Reduction in Sales price of Mandatory goods due to less GST Rates and elimination of cascading
  • One Tax Rate throughout the country results in Same Price of goods
  • With New type of Tax there will be Increase in employment opportunities

Advantages of GST to Trade:

  • Double taxation will be End. No Tax over the Tax Now
  • Advantages of GST to Trade is that it will promote Exports with single type of Tax
  • One India One Market
  • Simplified Tax System.
  • Get Input credit on all Purchases and services

All the Products where multiple taxes where applicable will be cheaper like excise duty and vat both will come to about 30% of Tax but in GST it is assumed to be 18-20%. Above were the advantages of GST bill and now I will show you some Disadvantages of GST bill in India. This is the losses which will effect you only in short term and may not be painful for you in the long run if the system will work properly.

 Disadvantages of GST Bill in India

The Service Tax in India is now 15% but the proposed GST is about 18-20%. All the services will be Costlier and this one of the Disadvantages of GST Bill on Common Person.

There are some retail products where the Tax rate is only 4 percent but with GST it will be costlier like
Garments and cloths.

The control on business will be of state and central government so it may be some complex for the businessman.

All credits will be online and some penalties are like criminal activity. So it is threatening for the small businessman who is now free from Taxes.

GST is also having three type of taxes and all have to be maintained and this not going too easy for small Businessman.

Above are the GST Bill advantages and disadvantages in India and as per me, it will be more comfortable than the existing Tax Process in India.

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