The rate of tax is the percentage at which taxes are imposed on goods, services, or income, determining tax liabilities.
Key Points
- GST Rate is the percentage rate which charge on transaction related to supply of goods and services.
- Slab are determined by GST Council,
- Rate slab are Review and revised by following some certain steps in regular basis by GST Council
- GST Rates are levied on products not Income like Direct Tax, Its Rate high for luxuries items and low rates for necessities items.
(Note: Some supply of goods and services are yet not added by GST Council)
- Petroleum crude,
- High speed diesel,
- Motor spirit,
- Aviation turbine fuel, and
- Natural gas
GST rate as differentiate between four slabs:
- 5%
- 12%,
- 18%,
- 28% (rate for Luxuries product)
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(Note: Given GST rate are mostly used on daily basis on products, but there are some other GST rate which are normally use 3% and 0.25%)
Since for starting GST Council has revised the rate for different product, for this on a fixed time every time a council meeting has organized.
(Note: Some rates are different for different category under such as Composition scheme. TCS and TDS are also concept of GST)
As Related to GST rate there are such as concept of CESS which apply on sale of certain goods like gasoline, tobacco, cigarette and aerated water, with rates of range for 1% to 204%.
HSN Code
It is a systematic Code for classification of GST rate on Products all over the world. HSN Code called for Harmonized System of Nomenclature. Developed by world customs organization (WCO) on 1988, Internationally accepted by World council at aggregate of 98% international trade business follow this commodity description and coding system, it’s a format of 6 digit uniform code that more then 5000+ product and accepted worldwide.
The main purpose of HSN code in INDIA is the classification of the products and its GST rate for customs and central excise. Later for make it more related it adds two more digits to bring total of 8-digit code classification.
SAC Code
Like Goods for HSN Service also has systematic code for its classification service for recognition, measurement and taxation. SAC stand for Services accounting code as classification code for services. It’s a format of 6 digit uniform code
Summary: The rate of tax is the percentage at which taxes are imposed on goods, services, or income, determining tax liabilities.