New GST Rates Comes Into Effect Today
- 18-Jul-2022
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New Delhi: As Goods and Services Tax (GST) Council’s decision comes into force from Monday, customers will have to shell out more for household items, bank services, hospitals and hotels. The prices of several essential commodities and services are going to increase from today, including pre-packed, labelled food items and hospital rooms.
The decision was taken last month at the 47th GST meeting chaired by Finance Minister Nirmala Sitharaman and comprising her state counterparts, where they pruned the exemption list and imposed tax on a host of goods and services. The Council had also removed duty inversion for goods where the taxes on inputs were higher than those on the output.
List of items be become dearer:
- Customers have to pay 5 per cent GST on pre-packed, labelled food items like atta, paneer and curd
- 5 per cent GST will also be levied on hospital rooms with rent above Rs 5,000.
- Hotel rooms with tariff of up to Rs 1,000/day, maps and charts, including atlases, will attract a 12 per cent Goods and Services Tax (GST).
- A total of 18 per cent GST will be levied on tetra packs and fees charged by banks for the issue of cheques (loose or in book form).
- Tax rates on products such as printing, writing or drawing ink; knives with cutting blades, paper knives and pencil sharpeners; LED lamps; drawing and marking out instruments will be hiked to 18 per cent from today, from 12 per cent currently.
- Solar water heater will now attract 12 per cent GST as compared to 5 per cent earlier.
- Services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will see tax going up to 18 per cent from the current 12 per cent.
- Services rendered by regulators such as RBI, IRDA and SEBI will be taxed at 18 per cent and so will be renting of a residential dwelling to business entities.
- Bio-medical waste treatment facilities shall attract 12 per cent GST
- Non-ICU hospital rooms exceeding Rs 5,000/day will be levied 5 per cent GST, without input tax credit, to the extent of the amount charged for the room.
List of items to become cheaper:
- Taxes will be cut on on ostomy appliances and on transport of goods and passengers by ropeways to 5 per cent from July 18, from 12 per cent.
- Renting of truck, goods carriage where the cost of fuel is included will now attract a lower 12 per cent rate as against 18 per cent.
- GST exemption on the transport of passengers by air to and from northeastern states and Bagdogra will be restricted to economy class only.
- Electric vehicles, whether or not fitted with a battery pack, would be eligible for the concessional GST rate of 5 per cent from July 18.
