What becomes cheap and expensive after GST Meet?
The 47th meeting of the GST Council ended today on Wednesday. In the meeting, it was decided to bring more items under the ambit of GST. Many coming out of the meeting will affect the pockets of the common man. Let's understand what became expensive and what became cheap...
The 47th GST Council meeting chaired by Finance minister Nirmala Sitharaman ended on Wednesday. Many important decisions related to GST have been taken in this meeting held in Chandigarh. In the meeting, it was decided to bring more items under the ambit of GST.
Many decisions emanating from the meeting will affect the pockets of the 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.
The new rates will be applicable from July 18
Revenue Secretary tarun Bajaj told a press conference that the GST Council's decisions on exemptions and reforms in tax slabs will come into effect from July 18 this year. Before Bajaj's statement, Sitharaman told reporters that the GST Council has accepted the GoM's recommendation on tax exemptions and reforms.what will be expensive?
packaged food
The GST panel has accepted the recommendation to bring packaged food items under the purview of GST. “Till now, exclusive food items, cereals, etc., if not branded, were exempted from GST. The GST Council has recommended revision of exemptions from pre-packaged and pre-labeled retail packs, including pre-packaged, pre-labeled curd, lassi and butter milk. That is, all these things will become expensive.Issuance of bank Check Book: 18 per cent GST will be levied on charges for issuance of checks (in book form) by banks.
Hotel Rooms: The GST Council has asked to levy tax at the rate of 12 per cent on hotel rooms renting less than Rs 1,000 per day. There is no tax 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: An increase in the prices of LED lights, fixtures, LED lamps can be seen. The GST Council has recommended a reform in the inverted duty structure from 12 per cent to 18 per cent.
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 above the 12% slab.
Pumps and machines: Deep tubewell turbine pumps, submersible pumps, cycle pumps have been increased from 12 per cent to 18 per cent. Machines for cleaning, sorting or grading, seeds, cereals and pulses will also come under this purview. Machinery used in milling industry or for processing grain etc. wind mill which is wind based flour mill, wet mill will also attract GST rate of 18 per cent as against 12 per cent earlier.