With the conclusion of the 47th GST Council meeting on Wednesday, a number of items and services are set to become expensive with the revised goods and services tax (GST). The GST rate hike comes on the back of high retail and wholesale inflation. This means that from pantry products to electrical goods, you are going to face the double whammy of inflation.
“The GST Council, at a two-day meeting here (Chandigarh), accepted recommendations for rate rationalisation made by different groups appointed by it, resulting in tax changes," Union Minister Nirmala Sitharaman said after the conclusion of the GST Council meeting.
Notably, the GST rate hike is going to take effect from July 18.
Here is the full list of items and services under different tax slabs that are going to going to get expensive after the hike in the GST rates:-
Goods and Services Under 18% GST
• Printing, writing and drawing ink.
• Knives, cutting blades, paper knives, pencil sharpeners, blades, spoons, forks, ladles, skimmers, cake-servers, and drawing and marking out instrunments.
• Tetra Packs.
• Bank cheque books.
• Work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums
• Maps and charts: atlas, wall maps and topographical plans and globes
• LED Lights and Lamps
• Power-driven pumps
• Machines used to clean, sort or grade, seed, grain pulses
• Machines used in milling industry
• Machines used for processing of cereals such as pawan chakki and atta chakki.
• Wet grinders.
• Machines for grading, cleaning and sorting eggs
• Dairy machines
• Jobs: in the manufacturing and processing of leather items such as footwear, and in the manufacturing of bricks, as the
Goods and Services under 12% GST
• Solar water heater
• Hotel rooms with tariff below Rs 1000 per day.
• Leather
Goods and Services under 5% GST
• Prepacked and labelled food items- Wheat flour, papad, paneer, curd, and buttermilk, meat, fish, lassi, honey, dried leguminous vegetables, dried makhana, wheat, cereals, puffed rice (muri)
• Hospital rooms with tariff of Rs 5000 or more per day (excluding ICU)
• Ostomy appliances.
• Tax on the transport of goods and passengers by ropeways
• Renting of truck, goods carriage where the cost of fuel is included, and electric vehicles whether or not fitted with a battery pack.
Goods & Services Exempted From GST
• Unpacked, unlabelled and unbranded items.
• Transport of passengers from air and from north-eastern states and Bagdogra.
• Intrastate supplies through e-commerce portals. The suppliers will not have to obtain GST registration, if their turnover is lower than Rs 40 lakh and Rs 20 lakh for goods and services, respectively.
