With the new Goods And Services Tax (GST) rates applicable from Monday, customers will have to spend extra on a host of items ranging from groceries to electronic goods. The decision to revise the GST rate was taken at the 47th GST Council Meeting between June 27-29.
After the conclusion of the GST Council Meeting, Union Minister Nirmala Sitharaman said, “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.”
Notably, during the meeting, the council also removed duty inversion for goods where the taxes on inputs are higher than those on the output.
The new GST rates come at the back of soaring retail and wholesale inflation. Here is a list of items that are going to get costlier and cheaper from today with the GST rate hike.
Items Under 18% GST from 12% GST
- Printing, writing or drawing ink
- Tetra Packs
- Knives, cutting blades, paper knives, pencil sharpeners, blades, spoons, forks, ladles, skimmers, cake servers, and drawing and marking out instruments.
- Power-driven pumps such as water pumps, deep tube-well turbine pumps
- Machines that are used to clean, sort or grade, seed, grain pulses
- Machines that are used in the milling industry
- Machines that are used for processing cereals such as pawan chakki and atta chakki
- Machines for grading, cleaning and sorting eggs
- Work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums
- LED Lights and Lamps
Items Under 12% GST from 5% GST
- Solar water heater and system
- Prepared, and finished leather
Items 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).
Items Under 5% GST from 12% GST
- Ostomy and Orthopaedic instruments
- Hospital rooms with a tariff of Rs 5000 or more per day (excluding ICU)
Items Under 5% GST from 18% GST
- Tax on the transport of goods and passengers by ropeways
Items Under 12% GST from 18% GST
- Renting of the truck, goods carriage where the cost of fuel is included, and electric vehicles whether or not fitted with a battery pack.
Items Exempted From GST
- Unpacked, unlabelled and unbranded items.
- Transport of passengers from the 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.