What's Happening?
After 18th July 2022, you will have to shell out a little more on a few goods and services because the GST rates have been revised!
A two-day Goods and Services Tax (GST) council meeting was held at Chandigarh on the 28th and 29th of June. Later in the evening, the Finance Minister, Nirmala Sitharaman, addressed the press and gave a summary of the outcomes of the 47th GST Council Meeting.
Things That Would Get Costlier After GST Rate Revision
Bank Cheque Book: A GST of 18% will be levied on the fee charged by banks to issue cheques.
Packaged Food: All sorts of pre-packed food such as curd, lassi, paneer, honey, dried makhana, wheat, and meat (except frozen) were earlier exempted but now will attract a GST of 5%.
Hotel Rooms and Hospital Beds: Hotel rooms under Rs 1,000 per day will attract a GST of 12%. Hospital beds exceeding Rs 5,000 per day will be taxed at 5% (excluding ICU).
LED Lights, Lamps, Knives: The next time you purchase an LED bulb, you will have to spend a little more because the tax on LED lights and lamps has been revised from 12% to 18%. Also, cutting blades, paper knives, and pencil sharpeners will be taxed 18%.
Pumps and Machines: Bicycle pumps, turbine pumps, and submersible pumps will now be taxed at 18%. Also, machines used for cleaning and sorting seeds will be taxed at 18%. GST on solar water heaters will also be charged at 12%, which previously was 5%.
Things That Would Get Cheaper After GST Rate Revision
Goods Carrier Rent: Shipping items would now become cheaper because the GST council has slashed the tax on carrier vehicles from 18% to 12%, including fuel cost.
Ropeway Rides: You can now go to Jammu and Kashmir and enjoy a ropeway ride at a cheaper price as tax on ropeway rides has also been slashed from 18% to 5%.
Orthopaedic Appliances: Ostomy and Orthopedic appliances will now be taxed at 5%, which earlier was 12%.
What Lies Ahead?
The recommended GST changes will be applicable from 18th July 2022. The GST council has also postponed the decision to levy a 28% tax on casinos and online gaming. The council has asked the Group of Ministers (GoM) to submit their inputs from the states by 15th July 2022.
