N J Jain & Associates
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FAQs Regarding GST Rates

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FAQs Regarding GST Rates

Common queries about GST rates are widespread. Individuals and businesses seek clarification on the appropriate product category and the corresponding tax rates. Additionally, they may seek information on whether any exemptions or concessional rates apply to specific items. Knowing frequently asked questions can help determine accurate tax liabilities and inform decisions related to products and services. It is wise to remain updated on any potential rate changes or implementations.

The GST rates slabs are notified by GST Council. The GST Council revises the slab rates periodically.

General rates under GST are 3%, 5%, 12%, 18% and 28%.

GST is not levied on exempt supplies, Nil rated supplies and Non-GST Supply.

Exempt supplies means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;

Nil-rated supply is a type of GST supply where the GST rate is also 0%, but the supplier cannot claim the input tax credit. Non-GST supply or non-taxable supply is a type of GST supply which does not attract any GST, and exempt supply is a type of GST supply which is exempt from GST.

Non-GST Supply: Goods or services on which GST is not leviable are called non-GST supply. Input tax credit of inputs and / or input services used in providing non-GST supply is not available i.e. no input tax credit on non-GST supplies. Examples of Non-GST supplies are alcohol for human consumption, petroleum products, electricity etc.

If the product is for general purpose, then it will be classifiable under general head and general rate will be levied. However, if the product is of special nature and GST Council has notified special head and special rate then it will be taxed accordingly.

There is an Advance Ruling Mechanism which helps the taxpayer to solve his ambiguity regarding the following matters:

(1) Classification of any goods or services or both

(2) Applicability of a notification made under the provisions of the CGST Act

(3) Time and value of supply of goods or services or both

(4)Acceptance of input tax credit for tax paid or deemed to have been paid

(5) Determination of the need to pay tax on any products or services or both

(6)Whether the application is needed to be registered

(7) Whether any specific action taken by the applicant in relation to any products or services or both amounts to or results in a supply of goods or services or both, within the meaning of that word.

The application can simply file form GST ARA-01 and seek advance ruling in the ambiguity regarding the applicable rate of tax.