A complete guide on GST on Toys and Sporting Goods
December 27, 2021
GST on Toys and Sporting goods
Table of Content
In India, the GST (Goods and Service Tax) rate is fixed for all products and is divided into five tax rate slabs: 0%, 5%, 12%, 18%, and 28%. Toys and sporting items are subject to a GST rate of 12%, 18%, or 28%. Let’s take a closer look at the GST on toys and sports equipment. Before going towards the tax rate on toys and sports goods let’s have a quick look at what is GST, and Why it is Important.
What is GST (Goods and Service Tax)?
The Goods and Services Tax (GST) is a tax imposed on goods and services. It is an indirect tax that has mostly superseded many other indirect taxes in India, such as VAT, services tax, and excise duty. The Goods and Service Tax Act was passed by Parliament on March 29, 2017, and into effect on July 1, 2017. In India, the Goods and Services Tax (GST) is a multi-stage, destination-based tax that is levied on every value addition. GST (Goods and Services Tax) is a single domestic indirect tax law that applies to the entire country.
Importance of GST (Goods and Service Tax)
- With the implementation of the GST, it has simplified the taxation process for the services and commodity business in a country.
- GST brings uniformity in the Taxation process, along with that it will be easy for the taxpayer to file an income tax return.
- It allows centralized registration, points towards positive growth of the country’s GDP (Gross Domestic Product)
- GST (Goods and Service Tax) brings regulation and accountability to unorganized sectors such as the textile industry.
GST (Goods and Service Tax) Rate on Toys
- Toys such as scooters, pedal cars, and tricycles will be taxed at 12% if they are not created electronically.
- All electronic toys, such as pedal cars, scooters, tricycles, and other similar items, would be subject to an 18% GST.
- Video games and video game consoles will be subject to a 28% GST entertainment articles or other carnivals, as well as conjuring tricks and novelty jokes, are subject to a 28% GST.
- If the toy does not fall into one of the above categories, it will be taxed at a rate of 28%.
GST (Goods and Service Tax) Rate on Sporting Goods
- Other than articles and equipment for regular physical activity, sports goods are subject to a 12% GST.
- Fishing rods, and other line fishing tackle, as well as fish landing nets, are all subject to a 12% GST.
- If the athletic goods do not fall into one of the categories above, they will be taxed at a rate of 28% by default.
- Apart from this, equipment or articles related to athletics, gymnastics, and physical exercise will be taxed at a 28% GST rate.
The Goods and Services Tax (GST) establishes accountability and uniformity in the taxation of goods and services. Small traders will benefit from the implementation of the tax rate when it comes to ITC (Input Tax Credit). I hope that this blog provides you with all of the necessary information related to GST on toys and sporting goods.
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