In the earlier indirect tax regime, various taxes were levied at every stage of business and sales. Excise was levied on manufacture and production, while VAT was levied on the sale of goods within the state, and CST was levied on the sale of goods outside the state. Service tax was levied on services provided by the person. There were various laws enacted for all the above events. It had its own set of disadvantages and its share of advantages. To overcome the difficulties faced by the tax payer, a new law on a Pan India basis came into the picture. All these taxes were subsumed under one law- Goods & Service Tax Bill, 2017. GST is a value added tax which is levied on manufacturer/producer, sale and consumption of goods and services. The supplier at each stage is permitted to avail credit of GST paid on purchases of goods and services. This GST paid shall be set off against GST collected in respect of the supply of goods and services made by him. Thus, set off benefit is available and the expense of tax is born by the final customer. Another benefit of GST is that there is no cascading of tax as only value added at each stage is taxed. GST is a tax levied on all supply of goods and services except alcoholic liquor for human consumption. Taxes levied under GST shall be charged at 0%, 0.25%, 3%, 5%, 12%, 18%, and 28%. Maximum rate of GST shall be 40%. The products that come under GST are listed as per HSN code (Harmonised System of Nomenclature). This ensures the invoicing practises match with global standard of product nomenclature. Currently, the goods on which GST is not levied till date are:
(As per Central Board of Indirect Taxes and Customs - Department of Revenue, Ministry of Finance and Government of India)
All goods other than live horses
| HSN CODE | PRODUCTS |
|---|---|
| 0101 | Live asses, hinnies and mules |
| 0102 | Live bovine animals |
| 0103 | Live swine |
| 0104 | Live goats and sheep |
| 0105 | Live poultry, like fowls of the species Gallus domesticus, geese, ducks, guinea fowls and turkeys |
| 0106 | Other live animals like birds, mammals, insects |
All goods other than in frozen state and stored in unit containers
| HSN CODE | PRODUCTS |
|---|---|
| 0201 | Meat of bovine animals, chilled or fresh |
| 0203 | Meat of swine, chilled or fresh |
| 0204 | Meat of goats or sheep, chilled or fresh |
| 0205 | Meat of horses, mules, asses, or hinnies, chilled or fresh |
| 0206 | Edible offal of bovine animals, goats, swine, asses, sheep, horses, hinnies or mules, chilled or fresh |
| 0207 | Meat and edible offal, of the poultry of heading HSN code number 0105, chilled or fresh |
| 0208 | Other meat and edible meat offal, chilled or fresh |
| 0209 | Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, chilled or fresh |
Fish, molluscs, crustaceans and other aquatic invertebrates (prawn / shrimp seeds / fish seeds), whether processed or not, cured or in frozen state, and all goods, other than processed, cured or in frozen state
| HSN CODE | PRODUCTS |
|---|---|
| 0301 | Live fish |
| 0302 | Fish, chilled or fresh, not inclusive of fish fillets and other fish meat of heading HSN code number 0304 |
| 0304 | Fish fillets and other fish meat, whether or not minced, chilled or fresh |
| 0306 | Crustaceans, whether in shell or not, live, chilled or fresh; crustaceans, in shell, cooked by steaming or by boiling in water, chilled |
| 0307 | Molluscs, whether in shell or not, live, fresh, chilled; aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled |
| 0308 | Aquatic invertebrates other than crustaceans and molluscs, live, chilled or fresh |
| HSN CODE | PRODUCTS |
|---|---|
| 401 | Fresh milk and pasteurised milk, inclusive of separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, not including Ultra High Temperature (UHT) milk |
| 403 | Curd, lassi, butter milk |
| 407 | Eggs Birds' eggs, in shell, fresh, preserved or cooked |
| 406 | Chena or paneer, other than put up in unit containers and bearing a registered brand name |
| 409 | Natural honey, other than put up in unit container and bearing a registered brand name |
| HSN CODE | PRODUCTS |
|---|---|
| 501 | Human hair, unworked, whether or not washed or scoured; waste of human hair |
| 511 | Semen inclusive of frozen semen |
All goods under this chapter
| HSN CODE | PRODUCTS |
|---|---|
| 0701 | Potatoes, chilled or fresh |
| 0702 | Tomatoes, chilled or fresh |
| 0703 | Onions, garlic, shallots, leeks and other alliaceous vegetables, chilled or fresh |
| 0704 | Cabbages, kale, kohlrabi, cauliflowers and similar edible brassicas, chilled or fresh |
| 0705 | Lettuce (Lactuca sativa) and chicory (Cichorium spp.), chilled or fresh |
| 0706 | Turnips, salsify, carrots, salad beetroot, radishes, celeriac and similar edible roots, chilled or fresh |
| 0707 | Gherkins and cucumbers, chilled or fresh |
| 0708 | Leguminous vegetables, unshelled or shelled, chilled or fresh |
| 0709 | Other vegetables, chilled or fresh |
| 0712 | Dried vegetables, sliced, broken, cut, whole or in powder, but not further prepared |
| 0713 | Dried leguminous vegetables, shelled, whether or not split or skinned, apart from those stored in unit container and having a registered brand name |
| 0714 | Salep, manioc, Jerusalem Artichokes, arrowroot, sweet potatoes and similar tubers and roots with high insulin or starch content, chilled or fresh; sago pitho |
Fresh fruits other than in frozen state or preserved
| HSN CODE | PRODUCTS |
|---|---|
| 0801 | Coconuts, dried or fresh, whether or not peeled or shelled |
| 0802 | Other nuts, fresh such as almonds, hazelnuts or filberts (Coryius spp.), walnuts, chestnuts (Castanea spp.), pistachios, macadamia nuts, kola nuts (Cola spp.), areca nuts |
| 0803 | Bananas, inclusive of plantains, fresh or dried |
| 0804 | Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh |
| 0805 | Citrus fruit, like, mandarins, oranges, inclusive of satsumas and tangerines; wilkings, clementines and similar citrus hybrids, grapefruit, inclusive of lemons, pomelos, (citrus limonum, citrus limon) and limes (citrus latofolia, citrus aurantifolia), fresh |
| 0806 | Grapes, fresh |
| 0807 | Melons (inclusive of watermelons) and papaws (papayas), fresh |
| 0808 | Apples, quinces and pears, fresh |
| 0809 | Apricots, peaches, cherries (inclusive of nectarines), sloes and plums, fresh |
| 0810 | Other fruit such as mulberries, strawberries, blackberries, raspberries and loganberries, red, black or white currants and cranberries, gooseberries, bilberries and other fruits of the genus vaccinium, durians, kiwi fruit, pomegranates, persimmons, sapota (chico), tamarind, custard-apple (ata), litchi, bore, fresh |
| 0814 | Peel of citrus fruit or melons (inclusive of watermelons), fresh |
All goods of seed quality
| HSN CODE | PRODUCTS |
|---|---|
| 0901 | Coffee beans, not roasted |
| 0902 | Unprocessed green leaves of tea |
| 0910 | Fresh ginger and fresh turmeric, other than in processed form |
All goods, other than those put up in unit container and bearing a registered brand name
| HSN CODE | PRODUCTS |
|---|---|
| 1001 | Wheat and meslin |
| 1002 | Rye |
| 1003 | Barley |
| 1004 | Oats |
| 1005 | Maize (corn) |
| 1006 | Rice |
| 1007 | Grain sorghum |
| 1008 | Buckwheat, canary and millet seed; other cereals such as jawar, bajra, ragi |
1101, 1102, 1105, 1106 (Flour): Aata, maida, besan etc., apart from those stored in unit container and having a registered brand name
| HSN CODE | PRODUCTS |
|---|---|
| 1101 | Wheat or meslin flour |
| 1102 | Cereal flours other than of wheat or meslin i.e. rye flour, maize (corn) flour, etc. |
| 1103 | Cereal groats, meal and pellets, apart from those stored in unit container and having a registered brand name |
| 1105 | Flour of potatoes |
| 1106 | Flour of the dried leguminous vegetables of heading HSN code number 0713 (pulses), of sago or of roots or tubers of heading HSN code number 0714 or of the products of Chapter 8 i.e. of mango flour, tamarind, singoda, etc. |
All goods of seed quality
| HSN CODE | PRODUCTS |
|---|---|
| 1201 | Soya beans, whether or not broken |
| 1202 | Groundnuts, not roasted or otherwise cooked, whether or not shelled or broken |
| 1204 | Linseed, whether or not broken |
| 1205 | Rape or colza seeds, whether or not broken |
| 1206 | Sunflower seeds, whether or not broken |
| 1207 | Other oil seeds and oleaginous fruits (i.e. palm nuts and kernels, castor oil seeds, cotton seeds, sesamum seeds, safflower (Carthamus tinctorius) seeds, mustard seeds, melon seeds, ajams, mango kernel, poppy seeds, Niger seed, kokam, whether or not broken. |
| 1209 | Seeds, fruit and spores, of a kind used for sowing |
| 1210 | Hop cones, fresh |
| 1211 | Plants and parts of plants (inclusive of seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, chilled or fresh |
| 1212 | Locust beans, seaweeds and other algae, sugar beet and sugar cane, chilled or fresh |
| 1213 | Cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets |
| 1214 | Swedes, fodder roots, mangolds, hay, clover, forage kale, lucerne (alfalfa), lupines, sainfoin, vetches and similar forage products, whether or not in the form of pellets |
1301: Lac and shellac
1404: Betel leaves
1701: Cane jiggery
| HSN CODE | PRODUCTS |
|---|---|
| 1904 | Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki |
| 1905 | Pappad, by whatever name it is known, except when served for consumption, and bread (branded or otherwise), except when served for consumption and pizza bread |
| HSN CODE | PRODUCTS |
|---|---|
| 2106 | Prasadam supplied by places of worship, such as temples, churches, dargahs, mosques, gurudwaras, etc. |
| HSN CODE | PRODUCTS |
|---|---|
| 2201 | Water, other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container |
| 2201 | Non-alcoholic Toddy, Neera |
| 2202 | Tender coconut water stored in unit container and having a registered brand name |
| HSN CODE | PRODUCTS |
|---|---|
| 2302, 2304, 2305, 2306, 2309 | Aquatic feed, cattle feed and poultry feed, inclusive of straw, grass and hay, husk and supplement of pulses, additives and concentrates, wheat bran and de-oiled cake |
| HSN CODE | PRODUCTS |
|---|---|
| 2501 | Common salt, inclusive of iodized and other fortified salts, kala namak, sendha namak [rock salt] |
| HSN CODE | PRODUCTS |
|---|---|
| 3002 | Human blood and its components |
| 3006 | All kinds of contraceptives |
Organic manure, apart from that stored in unit containers and having a brand name
| HSN CODE | PRODUCTS |
|---|---|
| 3304 | Kumkum, sindur, bindi, alta |
Plastic bangles
| HSN CODE | PRODUCTS |
|---|---|
| 4014 | Condoms and Contraceptives |
| HSN CODE | PRODUCTS |
|---|---|
| 4401 | Fuel wood or firewood |
| 4402 | Wood charcoal, inclusive of nut or shell charcoal, whether or not agglomerated |
| HSN CODE | PRODUCTS |
|---|---|
| 4802, 4817 | Judicial, non-judicial stamp papers, court fee stamps when sold by the Government Treasuries or vendors authorized by the Government, postal items, such as postcard, envelope, etc., sold by the Government, rupee notes when sold to the Reserve Bank of India & cheques, loose or in book form |
| HSN CODE | PRODUCTS |
|---|---|
| 4901 | Printed books, inclusive of braille books |
| 4902 | Newspaper, periodicals and journals, whether or not illustrated or containing advertising material |
| 4905 | Maps and hydrographic or similar charts of all types, inclusive of atlases, globes, topographical plans and wall maps, printed |
| HSN CODE | PRODUCTS |
|---|---|
| 5001 | Silkworm laying, cocoon |
| 5002 | Raw silk |
| 5003 | Silk waste |
| HSN CODE | PRODUCTS |
|---|---|
| 5101 | Wool, not combed or carded |
| 5102 | Coarse or fine animal hair, not combed or carded |
| 5103 | Waste of wool or of coarse or fine animal hair |
Khadi yarn, Gandhi topi
| HSN CODE | PRODUCTS |
|---|---|
| 5303 | Jute fibres, processed or raw but not spun |
| 5305 | Coconut, coir fibre |
Indian National Flag
6912: Clay lamps and earthen pots
7018: Bangles, apart from those made from precious metals
8201: Agricultural implements, animal-driven or manually-operated, and hand tools, like shovels, hoes, spades, picks, mattocks, rakes and forks; bill hooks, axes and similar hewing tools; pruners and secateurs of any type; timber wedges, scythes, hay knives, sickles, hedge shears, and other tools of a kind used in forestry, agriculture or horticulture
Handloom
| HSN CODE | PRODUCTS |
|---|---|
| 8802 | Spacecraft, inclusive of satellites and suborbital and spacecraft launch vehicles |
| 8803 | Parts of Goods of Heading HSN Code Number 8801 |
9021: Hearing Aids
Indigenous handmade musical instruments
| HSN CODE | PRODUCTS |
|---|---|
| 9609 | Slate pencils and chalk sticks |
| 9610 | Slates |
What is exempt supply?
Exempt supply means supply of goods or services or both which are chargeable to nil rate of tax. It also includes non-taxable supply. It shall also include those supplies that are wholly or partially exempted from GST by way of a notification.
What is non-taxable supply?
Non-taxable supply means a supply of goods or services or both which is not chargeable to tax under GST.
Does GST apply to whole of India?
Yes, GST applies to whole of India including the State of Jammu & Kashmir.
Who is a taxable person?
A person who compulsorily registers under GST or has registered himself for crossing the specifying limit of turnover shall be called as a taxable person.
What will GST in India comprise of?
GST will comprise of State GST (SGST), Central GST (CGST), Union Territory GST (UTGST), Integrated GST (IGST), GST Compensation Cess.
