Towards the end of June, the GST Council chaired its 47th meet under the leadership of finance minister Nirmala Sitharaman, where a slew of decisions were taken regarding the levy of Goods and Service Tax on various items. The council during the meeting agreed to bring multiple items under the ambit of GST, which were previously tax free. This is in turn expected to raise the household budget of the common man, who is already reeling under the pressure of an unprecedented inflation.
The decisions by the GST Council on exemptions and correction of inversion will come into effect from July 18 this year, revenue secretary Tarun Bajaj had told the media on June 29, after the GST Council meet.
HERE ARE THE ITEMS THAT GET COSTLIER AFTER GST RATE REVISION
– Pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk will attract a GST at a rate of 5 per cent from July 18. These items were previously exempt from the ambit of GST.
– An 18 per cent GST will be levied on fee charged by banks for the issue of cheques (loose or in book form), the council has informed.
– Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital will be taxed to the extent of amount charged for the room at 5 per cent without ITC.
– Maps and charts including atlases will be charged with GST at a rate of 12 percent from July 18.
– The GST Council also decided to bring hotel rooms under Rs 1,000 per day under the 12 per cent GST slab, as opposed to tax exemption category at present.
– The prices of LED Lights, fixtures, and LED Lamps are set to see a price hike as the GST council has recommended a correction in the inverted duty structure from 12 percent to 18 percent.
– Knives with cutting blades, Paper knives, Pencil sharpeners, and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc have been placed under the 18 percent GST slab, up from the 12 percent slab.
HERE ARE THE ITEMS THAT GET CHEAPER AFTER GST RATE REVISION
– Your ropeway rides at a vacation are set to get cheaper as the GST council has slashed the rates of GST on transport of goods and passengers through ropeways from 18 per cent to 5 per cent with Input Tax Credit services.
– Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens will now attract a GST rate of 5 per cent as opposed to 12 per cent earlier.
– The GST Council has also slashed GST from 18 per cent to 12 per cent on renting of goods carriage with operators where the cost of fuel is included in the consideration.
– IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces have been exempted from GST.
While the GST Council has deferred the decision on levying a 28 per cent tax on casinos, online gaming, horse racing and lottery, the decisions taken in June will affect the middle class man’s budget from July 18.