paragraph

The Goods and Service Tax (GST) came into effect in India on July 1, 2017. The GST tax regime is a comprehensive system that replaced the multiple tax rates that were earlier levied at every level of production.

It is an indirect tax and paid by the final consumer of the goods. This has positively impacted the final cost of goods by eliminating the “tax on tax” conundrum that was earlier prevalent. As it is a single tax, it has added transparency and uniformity to the taxation system. <a target="_blank" href="https://mintgenie.livemint.com/news/personal-finance/when-do-you-become-eligible-for-an-income-tax-refund-151641553275835" rel="dofollow">READ MORE: When do you become eligible for an income tax refund?</a>

GST structure in India has different slab rates that are applicable for different types of goods. There are predominantly four different slabs – 5 percent, 12 percent, 18 percent, and 28 percent for diversifying commodities.

<h3>5 percent slab</h3>Some goods and services that fall under this category include tea, coffee, fertilizers, restaurant food, newspaper advertisement, LPG, apparel under ₹1000, etc.

<h3>12 percent slab</h3>Dry fruits, fruit juices, ghee, pen ink, milk beverages, hotels within ₹1001-7,500 range, hats, candles, calendars, etc are taxed according to this slab rate.

<h3>18 percent slab</h3>Goods like tampons, notebooks, instant food mixes, wires, rods, fans, beauty &amp; make-up products, furniture, shampoos, etc fall under this rate.

<h3>28 percent slab</h3>Certain goods that include automobiles, vending machines, private aircraft, air conditioners, toothpaste, cinema tickets, printers, etc are taxed under this slab rate.

The tax levied on the goods increases as the utility of goods changes from necessity to luxury on the elasticity tangent. Necessary goods such as fresh fruits, vegetables, milk, chicken, eggs, sanitary napkins, etc are exempted from GST — i.e. no tax is applicable on these items. <a target="_blank" href="https://mintgenie.livemint.com/news/personal-finance/here-s-how-gifts-from-kin-and-others-are-taxed-151641480487921" rel="dofollow">READ MORE: Here's how gifts from kin and others are taxed</a>

Gold and precious stones are also taxed differently from the mentioned slab rates. GST on gold is 3 percent and rough precious and semi-precious stones are taxed at a rate of 0.25 percent. In addition, petroleum products, liquor, and electricity are taxed separately by respective state governments.

GST has facilitated a smooth tax mechanism in the country ever since it has been introduced. It has also reduced double taxation and the tax burden on consumers by drawing fixed lines along which taxes have to be paid. It is an optimal system that has brought about uniformity and transparency in terms of taxes throughout the country.

GST: What are the four different tax slabs under it

Various GST slab rates have been established to improve clarity in the taxes process between customers and sellers. Depending on particular characteristics, each of these slabs contains distinct types of things. For a clear understanding, look at our compilation.

How are gold prices decided in India?

All you need to know about Sovereign Gold Bonds

5 risks of investing in bank fixed deposits

Want to invest in Gold? Here are 4 best ways

Expanding the ambit of corporate insurance with coverage for transgender employees

Father’s Day: Guide your kids to manage their portfolio singlehandedly

4 financial tips for newly turned fathers to secure their family

South Indian Bank raises MCLR rates by up to 0.20%

As the markets fall, should mutual fund investors book profits and wait for the ‘right ’time? Five experts answer

Cryptocurrency prices today: Bitcoin, Ethereum rise marginally; most others trad

Bitcoin, was trading at $19,130, up nearly 0.43 percent, steering away from its past seven days routine. Ether, the second largest token, rose by 2.15 percent to 1,045 at 17:00 IST.

Your Questions Answered: Should you choose debentures over debt mutual funds, or vice versa?

Here we aim to address some of your most pressing personal finance queries. Read further to make the optimal use of your money!

ITC shares hit 52-week high; up 30% this year; analysts see more upside

<ul><li>The stock has been witnessing remarkable traction this year while the market has been under pressure. The stock of ITC has gained about 30 percent this year so far (YTD) against a 9 percent fall in the benchmark Sensex.</li></ul>

Reliance cracks 7% as govt imposes surprise duty on crude exports

stock markets

Higher crude oil prices have boosted the refining margins of oil refiners and RIL is one of the key beneficiaries of it.

<ul><li>Higher crude oil prices have boosted the refining margins of oil refiners and RIL is one of the key beneficiaries of it.</li></ul>

Titan sheds 6% in intra-day deals as govt hikes gold import duty to strengthen falling rupee

Titan fell as much as 5.9 percent to its day's low of ₹1,827 in intraday deals on BSE. However, the stock ended flat, up 0.2 percent at ₹1,926 as against a 0.2 percent decline in BSE Sensex.