Towards the end of June, the GST Council led its 47th meet under the initiative of Nirmala Sitharaman, where a large number of were made in regards to the duty of Goods and Service Tax on different things. The board during the gathering consented to bring numerous things under the ambit of GST, which were beforehand tax exempt. This is thus expected to raise the household budget of the common man, who is already feeling the pressure of inflation.
The decisions by the GST Council on exemptions and revisions will come into effect from July 18 this year. Revenue secretary Tarun Bajaj had told the media on June 29, after the GST Council meeting.
ITEMS THAT GET COSTLIER AFTER GST RATE REVISION
- Pre-packaged and pre-labeled retail packs in terms of the Legal Metrology Act, including pre-packed, pre-labeled curd, lassi, and buttermilk will gain a GST at a rate of 5 percent from July 18.
- An 18 percent GST will be applied on fees charged by banks for the issue of cheques.
- Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital will be taxed to the extent of the amount charged for the room at 5 percent without ITC.
- Maps and charts including atlas will be charged with GST at a rate of 12 percent.
- Hotel rooms under Rs 1,000 per day will charge the 12 percent GST slab.
- The prices of LED Lights, fixtures, and LED Lamps are set to see a price hike as the GST council has made a hike in the inverted duty structure from 12 percent to 18 percent.
- Knives with cutting blades, Paper knives, Pencil sharpeners, blades, Spoons, forks, ladles, skimmers, cake servers, etc have been placed under the 18 percent GST slab.
ITEMS THAT GET CHEAPER AFTER GST RATE REVISION
- GST council has slashed the rates of GST on the transport of goods and passengers through ropeways from 18 percent to 5 percent 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; the intraocular lenses will now have a reduced GST rate of 5 percent.
- The GST Council has also reduced GST from 18 percent to 12 percent on renting of goods carriage with operators where the cost of fuel is included in the consideration.
- IGST on specified defense items imported by private entities/vendors, when end-user is the Defence forces have been exempted from GST.
The decisions taken in June will affect the middle-class man’s budget from July 18.
