GST is charged at different rates depending on the type of goods or services a business deals in. For small business owners in Assam, picking the wrong rate slab can mean overcharging customers or under-collecting tax that still has to be paid to the government. Here is a simple reference to help you understand where your business fits.

Understanding GST Rate Slabs

India’s GST system uses a small number of standard slabs, generally 0%, 5%, 12%, 18% and 28%, along with a few special rates for items like gold. The rate that applies to your business depends on the HSN or SAC code of the goods or services you supply, not on the size of your business.

GST Rates for Common Business Categories in Assam

• Restaurants and small eateries: typically 5% without input tax credit, though this can vary by establishment type
• Tea and agricultural produce sold in raw form: often exempt or taxed at a lower slab, relevant for many businesses in Assam’s tea and farming sector
• Retail and trading businesses: usually 12% or 18% depending on the specific goods sold
• Professional and consulting services: generally 18%
• Handicrafts and handloom products: often taxed at reduced rates, an important category for many Assam-based artisans and small manufacturers

How to Choose the Right GST Rate for Your Business

The rates above are general references and can change based on government notifications, so it is worth confirming the current HSN or SAC code and applicable rate before you file returns or issue invoices. Charging the wrong rate can lead to disputes with customers or issues during a GST audit.

Need Help with GST Compliance in Assam?

AssamFilings helps local businesses register for GST, identify the correct rate for their goods or services, and file accurate monthly and annual returns. Book a free consultation to make sure your business is charging and filing GST correctly.