GST Rates Hike Comes Into Effect From Today
GST rates on several items were raised at the 47th Council Meet, which was presided over by Union Finance Minister Nirmala Sitharaman last month in Chandigarh.
While the GST council proposed withdrawing tax exemptions for a few items and changing rates for others, many exemptions were removed. The council also decided to eliminate duty inversion for goods where input taxes were higher than output taxes.
The following is a list of items that will become more expensive:
- The tax on paper knives, spoons, forks, ladles, skimmers, and cake servers was raised from 12% to 18%.
- The GST on power-driven pumps such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps, and bicycle pumps was raised from 12% to 18%.
- When branded and packed in a unit container, pre-packaged and labelled pulses and cereals such as rice, wheat, and flour (atta) will now attract 5% GST.
- When pre-packaged and labelled, curd, lassi, and puffed rice would be subject to 5% GST.
- LED lamps, lights, and fixtures, as well as their metal printed circuit boards, will see a GST increase from 12% to 18%.
- The GST on solar water heaters and systems has been raised from 5% to 12%.
- The GST on cut and polished diamonds will be raised from 0.25 to 1.5 per cent.
- The GST on e-waste will be increased from 5% to 18%.
- The tax on petroleum/coal bed methane will be raised from 5% to 12%.
- Hotel accommodations priced up to $1,000 per day will be taxed at a rate of 12%.
- Room rent (excluding ICU) in excess of 5,000 per day per patient charged by a hospital shall be taxed at 5% without ITC to the extent of the amount charged for the room.
The following products and services have lower GST rates:
- The tax on goods and passengers transported by ropeways is reduced from 18% to 5%.
- Renting a truck or goods carriage with fuel included will be less expensive as the tax is reduced from 18% to 12%.
- The GST on ostomy appliances has been reduced from 12% to 5%.
- The GST on several orthopaedic appliances has been reduced from 12% to 5%.
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