GST 2.0: Check old vs new rates of 400 items | FAQs on ITC, invoices & pricing
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New Delhi: It’s natural to have doubts about the old and revised GST tax rates, especially since changes have been made to around 400 items. Remembering all these revisions isn’t practical either. Although a press release listing the items with revised rates was issued in the first week of September, it did not include items whose tax structure remained unchanged.
To know the GST rates of all products, you can use the revised GST table published by the Central Board of Indirect Taxes. You can also refer to the old list to compare tax rates before and after September 22, when the revised rates took effect. The links are provided below:
How to check?
Open the old GST list. For example, if you want to know the GST rate for long-life milk (UHT), search for UHT or Ultra-High Temperature Milk. The old list shows 2.5%, which is the Central GST rate. Since an equal State GST is added to it, the total GST was 5%.
Now, open the new list and repeat the search. You’ll see `Nil' against this item, meaning it is now completely tax-free. The same method can be used to verify items that have not seen any change in their GST rates this time.
Frequently Asked Questions
Q: I am a vendor. Items that were given higher GST rates before September 22 are now being sold at lower rates. How do I manage this difference?
Even if the stock was purchased before September 22, vendors can charge only the revised GST rate when selling after that date. Vendors eligible for Input Tax Credit (ITC) can claim credit for the tax already paid on purchases before the revision. This credit can then be used to offset the difference in rates. However, ITC is applicable only if GST continues to apply to the item even after the revision.
Q: What if the invoice for an item sold before the GST revision is generated after September 22?
If the item was delivered and payment made before September 22, the old GST rate will apply. But if the product was delivered earlier but the payment or invoice was generated after September 22, the revised rate will apply.
Q: Has the GST for gold and silver changed?
No. The GST on gold and silver remains 3%, while for diamonds it continues to be 0.25%.
Q: Why haven’t the prices of some items increased even after a higher GST rate was announced?
Take aerated beverages like cola, for example. GST has been raised to 40% from 28%. At first glance, this suggests a sharp price hike. However, these beverages were already subject to a 12% cess in addition to the 28% GST, making the effective tax rate 40% earlier itself. Now, the cess has simply been merged with the GST, so there’s no change in the overall tax burden. A similar adjustment has also been made for vehicles too, where cess has been merged into GST.
Q: Will there be a change in the price of cigarettes and other tobacco products?
As of now, no changes have been made in the tax rates for such products. The current GST rate of 28%, along with an additional cess, continues. This keeps the overall tax burden between 52% and 88% depending on the product. Once cess collection ends, the GST will stand at 40%, but the government is expected to impose an additional tax to maintain the existing tax burden.
Q: Wasn’t paneer already exempt from GST?
Not entirely. Earlier, pre-packaged and branded paneer carried a 5% GST, while loose paneer was exempt. Under the revised structure, all types of paneer are fully exempt from GST.
Q: Will there be a change in petrol and diesel prices under GST?
No. Petroleum products do not come under the GST framework. Therefore, there will be no change in their prices.
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