Introduction

For any business to conduct its operations in a GST compliant fashion, it is important to be aware of the HSN / SAC codes of the goods and services that it deals in, and also the corresponding GST rates. Given the extensive list of goods and services which have been classified as taxable supplies under GST, it may not be feasible for a business, at least in the transition phase, to operate by committing the rates and codes to memory and use them appropriately while raising a GST invoice.

The easiest solution is to go for software, which allows a business to feed in the HSN / SAC code data, auto-fill the corresponding rates and carry on its trade. However, to help out businesses small or large, across the country, the GST Council has published an extensive GST rate list, on the CBEC website – which businesses can refer to at any time.

GST Rate List

GST Rate Schedule for Goods

Under GST, there are 7 specified rates for goods, each of which have been classified under a Schedule in the GST Rates Booklet for Goods. They are as follows:

Schedule I: Nil Rated

Schedule II: 0.25%

Schedule III: 3%

Schedule IV: 5%

Schedule V: 12%

Schedule VI: 18%

Schedule VII: 28%

Under each Schedule, the full list of specified Goods have been provided under two columns – “Chapter/Heading/Sub-heading/Tariff item” which provides the information of the HSN Codes & “Description of Goods” which provides the unique description of the goods for the benefit of the business. Thus the GST Rates Booklet provides the information about the HSN code with GST rates

The GST Rate chart for Goods can be accessed here.

GST Rate Schedule for Services

Under GST, there 5 specified rates for services, each of which have been classified in the GST Rates Booklet for Services. They are as follows:

Nil Rated

5%

12%

18%

28%

GST Rate Calculator

Due to the simplification of the indirect taxation regime, the calculation of the applicable taxes has become much simpler. The GST rates applicable on the various goods or services can now be calculated, based on the nature of the transaction – inter-state or intra-state.

Intra-State GST Rate Calculator

In case of Intra-State transactions, the GST rates can be calculated as follows:

CGST = Applicable GST Rate / 2 (for 28%, CGST will be 28/2=14%)

= Applicable GST Rate / 2 (for 28%, CGST will be 28/2=14%) SGST / UTGST = Applicable GST Rate / 2 (for 28%, SGST will be 28/2=14%)

In other words, CGST + SGST / UTGST = Applicable GST Rate

Inter-State GST Rate Calculator

In case of Inter-State transactions, the GST rates can be calculated as follows:

IGST = Applicable GST Rate

Note: Wherever applicable, GST Compensation Cess should be added to the applicable GST rate for the correct tax calculations.

GST Rate Finder

The GST Council has gone a step further to simplify the lives of businesses across the country by providing a comprehensive GST Rate finder in the CBEC website. This is a simple search feature, wherein a business can search for the right GST rate of any goods or service, by typing in either the HSN / SAC code or any relevant keywords regarding the goods or services, they are dealing in. Alternatively, the same search feature can also be used to find the HSN / SAC codes, by typing in relevant keywords regarding the goods or services.

In case of Goods, the GST Rate Finder will show the following fields:

Chapter / Heading / Sub-heading / Tariff item

Description of Goods

CGST Rate

SGST / UTGST Rate

IGST Rate

Condition (if any)

In case of Services, the GST Rate Finder will show the following fields:

Chapter / Section / Heading

Description of Services

CGST Rate

SGST / UTGST Rate

IGST Rate

Condition (if any)

The GST Rate Finder is accessible here.