There have been different types of goods and services tax applied to products and services in India. And to differentiate between them you can check the GST slabs in India. 5 types of GST slabs are set for products and services that include 0%, 5%, 12%, 18% and 28%. Read the given article to know the GST rate for products and services according to the updated GST.
GST Slabs in India for Products
Zero percent GST: The commonly used products in daily household like milk, fruit, vegetables, cereals, wheat and rice products doesn’t contain any GST. You can buy these products from any departmental stores or grocery shop without paying GST for them.
5 percent GST: A 5% GST is applied on the products such as footwear, medicines and branded wheat, flour and other pulses or grains. The government puts a low GST on products that come in daily usage of every single individual. GST is low that makes the product affordable for every customer who wishes to buy it.
12 percent GST: You can buy apparel, smartphones and old motor vehicles at 12% GST rate. According to the updated GST slab in India, 12% GST would be applied to fruit juices, meals and ayurvedic or homeopathic medicines.
18 percent GST: Under this slab, high priced items come which are applied with an 18% GST. Products under this slab are computers, printers, cement, paint, LPG gas stoves and chocolate products.
28 percent GST: Television, AC and Refrigerators come under this GST slab in India. And you can buy these products from any retailer or store with the payable GST of 28%. You can buy these heavy priced items with a 28% applied GST in India.
The government has set up these GST slabs for products to make it easier for customers to know the exact applied GST rate in India.
How did the GST Slab in India affect the loan and credit card products?
Not only the user daily items are affected with the GST but also their financial products have an impact of GST. With the latest update in the HGST slab now 18% GST is applied on the credit card and loans. This simply means the credit card joining fee and loan processing charges gets a hike. For example, if the joining fee for your credit card is INR 499 then the applied GST would be INR 89.82.
Before the update in the GST slabs in India, a 15% GST is applied on loan and credit card products. So, if you want to borrow a loan or apply for a credit card then you must know that now the GST rate is 18% for the product.
Now, check the GST slabs in India if you have any doubt regarding the applied GST on any specific product. In the slab, the detailed list of the products is mentioned which helps the customers knowing the exact rate applied to the product. So whenever you are purchasing a product from any supermarket or departmental store make sure that they charge an appropriate GST for the products.