GST New Rates: Here's What Gets Cheaper, Costlier From July 18
The GST Council in the meeting decided to levy tax at the rate of 12 percent on hotel rooms renting less than Rs 1,000 per day. No tax is levied on it as of now.
New Delhi: The 47th GST Council meeting chaired by Finance Minister Nirmala Sitharaman ended on Wednesday. Several important decisions related to GST were taken in this meeting held in Chandigarh. More items have been brought under the ambit of Goods and Services Tax (GST).
The decisions taken in the meeting will now hurt the pocket of a common man. The GST Council has decided to levy GST on pre-packaged food items. Unpacked items including food grains will also be subject to GST at the same rate when packed. Four GoMs presented their recommendations in the meeting.
Revenue Secretary Tarun Bajaj during a press conference said that the GST Council's decisions on exemptions and reforms in tax slabs will come into effect from July 18 this year. But before him, Union Finance Minister Nirmala Sitharaman said that the GST Council has accepted the GoM's recommendation on tax exemptions and reforms.
Here's What Gets Cheaper, Costlier From July 18.
Issuance of Bank Check Book: Issuance of Bank Check Book will attract 18 percent GST in book form by banks.
Hotel Rooms: The GST Council in the meeting decided to levy tax at the rate of 12 percent on hotel rooms renting less than Rs 1,000 per day. No tax is levied on it as of now.
Hospital beds: 5% GST on room rent (excluding ICU) above Rs.5000 per patient per day by the hospital.
LED Lights, Lamps: Now, people will have to pay extra for LED lights, fixtures, and LED lamps as the Council has recommended a reform in the inverted duty structure from 12 percent to 18 percent.
Knives: Knives with cutting blades, pencil sharpeners and blades for the same, spoons, forks, ladles, skimmers, cake-servers, etc., have been placed under the 18% GST slab over and above the 12% slab.
Pumps and machines: Pumps like turbine pumps, submersible pumps, and cycle pumps will now attract 18 percent GST from 12 percent. Machines for cleaning, sorting, or grading, seeds, cereals, and pulses will also come under this purview. Machinery used in the milling industry or for processing grain etc. The windmill which is a wind-based flour mill, the wet mill will also attract a GST rate of 18 percent as against 12 percent earlier.
Here's What Will Be Cheaper
Ropeway Rides: The GST Council has reduced the rates of GST on transportation of goods and passengers through ropeways from 18 percent to 5 percent with input tax credit services. The GST has been reduced from 18 percent to 12 percent on freight charges with operators where the cost of fuel is under consideration.
Orthopedic Devices: Splints and other fracture devices, prostheses of the body, other devices that are worn or carried or implanted in the body to replace any defect or disability and intraocular lenses will now attract 5% GST. Earlier this rate was 12 percent.
Defense Items: Specially imported defense items by private entities or vendors will be exempted from GST. But this exemption will be available only when there are end-user defense forces