Cumulative GST rate in India depend on the good code and differ from 0 to 28%.
18% is a rate that applies to majority goods and services. Here you can see several examples of a cumulative VAT (IGST) rates:
- CGST – Central Goods and Services collected by the central government and applicable on transactions intra state i.e. within a state.
- SGST – State Goods and Services Tax collected by the respective state government and applicable only on the transactions that are intra state i.e. within the state.
- IGST – Integrated Goods and Services Tax collected by the central government and applicable when goods or services are being supplied from one state to another state and also on imports.
- UTGST (or UGST) – Union territory Goods and Services Tax collected by the Union Territory government only and applicable in all the Union Territories of India. It taxes transactions within 1 Union Territory only.
The following rates apply to goods in India.
- 0% – some food as milk, fresh fish and vegetables
- 5% – some food and goods as apparel, footwear, vital medicines and coal
- 12% – most goods as phones and processed foods (cheese, frozen meat)
- 18% – scented candles, water heaters, detergents
- 28% – “luxury” goods, for example, cars, yachts, aircrafts and casinos fall under this category
As can be seen from the examples given, in India it is difficult to immediately determine the rate applied to a particular product, therefore it is necessary to treat this issue with great attention.