4 GST Tax Slabs and GST Filing – GST Guide

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Actually, any purchase you make in the value chain is subject to a “tax on tax.” This not only raises taxes to about 25-30% but also raises the overall cost of goods and services. The GST (Goods and Services Levy) is a single tax that applies to the supply of goods and services from the producer to the end customer. Its aim is to eliminate unpredictability and bring commodity prices across the country to parity. Its ultimate goal is to lower business production costs and create a single and streamlined market where the cost of products and services is more evenly distributed throughout the world. The MahaGST gives more information to the Maharashtra taxpayers.

The final rate slabs, as well as the products and services that fall under them, are listed below.

Basic services and food items are taxed at a lower rate, while luxury services and goods are taxed at a higher rate under GST. The GST council has categorized over 1300 goods and 500 services into four tax brackets: 5%, 12%, 18%, and 28%. This is in addition to the 3 percent tax on gold and the 0.25 percent special rate on rough precious and semi-precious stones under the GST.


A total of 81 percent of all goods and services are taxed at or below the 18% limit. This means that 7% of items are excluded, 14% of items are subject to a 5% tax, 17% of items are subject to a 12% tax, and 43% of items are subject to an 18% tax slab, while only 19% of items are subject to the highest tax slab of 28% under the new regime. The following is a list of some of the items that will be used in the various slabs.

The CA services for tax gives us a better understanding and helps us make the process easier.

Slab of GST Rates Exempted (No Tax)

This segment includes 7% of all products and services. Fresh fruits and vegetables, milk, buttermilk, curd, natural honey, flour, besan, bread, all kinds of salt, jaggery, hulled cereal grains, fresh meat, fish, chicken, eggs, bindi, sindoor, kajal, bangles, stamps, judicial papers, printed books, newspapers, jute and handloom, hotels and lodges with tariff b are some of these that are regularly consumed.

  • Slab of 5 percentage GST

This group comprises 14 percent of products and services. Packaged foods, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, cashew nut, cashew nut in shell, raisin, ice, fish fillet, kerosene, coal, medicine, agarbatti (incense sticks), postage or revenue stamps, fertilisers, rail and economy class air tickets, small restaurants, etc.,

  • Slab of 12 Percentage GST

Edibles such as frozen meat products, butter, cheese, ghee, packaged dry fruits, animal fat, sausages, fruit juices, namkeen, ketchup & sauces, ayurvedic medicines, all diagnostic kits and reagents, cellphones, spoons, forks, tooth powder, umbrella, sewing machine, spectacles, indoor games such as playing cards, chess board, carom board, ludo, apparels exceeding INR 1000, This category includes 17% of all products and services.

  • Slab of 18 percentage GST

This category includes 43% of all products and services. Pasta, biscuits, cornflakes, pastries and cakes, preserved vegetables, jams, soups, ice cream, mayonnaise, mixed condiments and seasonings, mineral water, footwear costing more than INR 500, camera, speakers, monitors, printers, electrical transformer, optical fibre, tissues, sanitary napkins, notebooks, steel products, headgear and its parts, aluminium foil, bamboo furniture.

  • Slab of 28 percentage GST 

This group includes 19% of all products and services. Other edibles include chewing gum, bidi, molasses, chocolate that does not contain cocoa, waffles and wafers dipped in chocolate, pan masala, aerated water, deodorants, shaving creams, aftershave, hair shampoo, dye, sunscreen, paint, water heater, dishwasher, weighing machine, washing machine, vacuum cleaner, automobiles, motorcycles, 5-star hotel stays, race club betting, and personal care items such as deodorants, shaving creams, after.

Courier services, cell phone tariffs, mobile bills, tuition fees, spa visits, insurance premiums, banking charges, and internet services are among the other things that would become more costly by 3%. These were formerly subject to a 15% service tax, but will now be subject to an 18% tax rate.

Aerated drinks, tobacco, and luxury goods will now be subject to the GST’s 28 percent tax bracket, making them more expensive.

Real estate will now become more costly, as it will now be subject to a 12 percent GST rather than the previous 6 percent.

GST Filing 

According to the GST law, any person, company, or limited liability partnership (LLP) registered under the GST Act is required to report sales, transactions, and tax paid to the administrative authorities by filing GST returns.

One of your first priorities as a businessperson/firm would be to file your GST return. As a result, learning the ropes will assist you in making the process go more smoothly and efficiently. When filing a GST return, you must provide all relevant information about your business operations, such as tax liability statements, tax payments, and any other relevant information as directed by the government.


The GST return must be filed electronically via the GST portal. A facility for the manual phase of GST return filing tasks must be provided. This service enables Indian business taxpayers to prepare returns offline and then upload them to GSTN through a facilitation centre. There are also some aspects of GST return filing that you should be aware of.

Purchases, output GST on transactions, input tax credits as a result of GST paid on purchases, and gross sales are all included in the GST return. Purchase invoices and GST-compliant sales are required to file the GST return.

What does GST return entail?

Anyone who applies for GST registration will also be allowed to file a GST return. The GST return is essentially a document that must be submitted in accordance with Indian tax laws. It would be used by tax officials to find out how much money they owe in taxes.

Who is allowed to file GST returns?

GST-registered business owners and dealers must file two monthly GST returns and one annual GST return. The GST that must be filed is often determined by the nature of the company. GST returns come in a variety of forms, and late filing would result in a penalty of Rs.100 per day before the GST returns are filed. Any tax obligation must be charged to the government as soon as possible after the filing is completed.

Reconciliation of GST Input Tax Credits

GST, or Goods and Services Tax, is an indirect tax based on the value added at each point of a service or product’s supply chain before it hits the client or buyer. GST imposes tax at various levels, and in order to prevent the cascading effect, it is planned to refund all parties involved in the various stages, with the exception of the final user. An input tax credit is the term for the element that is used to cover the tax liability.

An overview of the GST filing process in India

Any business owner who has registered but has not yet exceeded the exemption threshold must follow the GST billing procedure step by step.

The GST Council raised the annual gross turnover threshold limits for GST registration on April 1, 2019. According to this, any company in a normal category state with a selling of products turnover of Rs 40 lakhs is required to register. For special category states, the cap has been increased from Rs 10 lakhs to Rs 20 lakhs.

The threshold thresholds for service providers have remained unchanged. The amounts have been set at Rs 20 lakhs for regular category states and Rs 10 lakhs for special category states, respectively.


Jammu and Kashmir, as well as the states of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhand, fall under this group. When a taxpayer reaches the exemption limit, he or she must begin filing GST returns. The taxpayer is required to file the NIL return even though no taxable supplies are obtained or rendered within a given time. As a result, there is no way to stop filing GST. You will not be able to file the next period’s return if you fail to file the previous period’s return.

To put GST into perspective, every company would have to file monthly GST returns twice and an annual return once.

This means you’ll have to file GST returns 26 times a year in total. For filing GST returns, the GST portal provides four different types of forms. They are as follows:

  • Purchases may be returned.
  • Return to get your supplies.
  • Returns next year.
  • Returns every month.

Small business taxpayers in India who have chosen the composition scheme are only required to file GST returns quarterly. The method of filing a tax return can be completed entirely online.

GST Advantages of Filing of Returns


The cascading impact is no longer present

Several other taxes, such as federal excise duty, service tax, customs duty, and state-level value-added tax, have been eliminated since the implementation of GST into the Indian tax system. As a result, the cascading impact of tax on tax has been abolished by a single GST.

Benefits with a higher threshold

Prior to the implementation of GST, any company with an annual turnover of more than 20 lakhs was subject to VAT, or value added tax. Service taxes were not needed for services with a turnover of less than ten lakhs.

Advantages of Starting a Business

Previously, start-ups with an annual turnover of 5 lakh had to pay VAT, which would have been extremely challenging for a company in its early stages. Businesses will deduct the service tax from their revenues now that GST has replaced VAT. The CA Services for Business can help you gain more information regarding GST and will guide you throughout the process.

E-commerce allows for easy distribution of goods

Start-ups are establishing a strong online presence, using their websites to sell their services and goods. There were several different types of VAT rules, and the supply of goods through the internet, or E-commerce, was never well-defined. If you need to send products to several states, for example, you must first file a VAT declaration. Following that, you must have identification information for the trucks that transport the products. Owing to a lack of proper paperwork, goods are often confiscated by authorities. GST has now eliminated all of these perplexing procedures. The CA Services for Business guides you throughout the process.

Accountability and regulations

Prior to the introduction of the GST, the tax filing system was disorganised. All taxes are now paid electronically, and the big hassles associated with tax filing have been removed as a result of the GST implementation. As a result, industries have become more accountable, and tax filing laws have become more controlled.

GST Calculation Formula:

The following formula can be used by the taxpayer to measure GST. The formula below can be used to measure the net price of a commodity after applying GST and then removing it.


The GST measurement formula is as follows:

  1. Addition of GST:

Net Price = Original Cost + GST Value. 

Where, GST Value = (Original Cost x GST Percentage)/100.

  1.  Reduction of GST:

Net Price= Original Cost – GST

Where, GST Amount = Original Cost – [Original Cost x 100/ (100+GST percent)] 

Example of GST Calculation

Assume that a commodity is sold for Rs. 4,000 and that the GST rate is 12%.

The product’s net price is therefore Rs. 4,000 + 12 percent of Rs. 4,000.

This equals Rs. 2,480 (Rs. 2,000 + Rs. 480).


The GST has brought a change in the existing tax system. The taxes for each item are normalised. This has become a great advantage for small business and start-ups. But filing GST may seem tedious. This is where our CA Services for Business and CA services for tax play a wonderful role in helping you meet your needs. If you are a Maharashtra taxpayer, go to MahaGST for more information.

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