New GST Rules: From Dairy Items To Hospital Rooms, Here's What Gets Costlier From Today

The new GST rates announced by the GST council last month begin to come into effect from today, i.e. 18th July 2022.

Customers will have to pay a new 5% GST on pre-packed, labelled food items like atta, paneer and curd, as per PTI., The Central Board of Indirect Taxes and Customs (CBIC) yesterday clarified that all pre-packaged items containing a quantity up to 25 Kg, will attract This GST of 5%. Items above 25 kg which are pre-packaged in a single packet, will be exempt from GST.

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Also, this 5% GST will be levied on non-ICU hospital rooms with room rent above Rs 5,000 per day.

In addition, hotel rooms with tariff of up to Rs 1,000/day, maps and charts, including atlases, will get expensive and attract a 12% GST, while 18% GST will be levied on tetra packs and fees charged by banks for the issue of cheques (loose or in book form).

Tax rates on products such as printing, writing or drawing ink; knives with cutting blades, paper knives, forks, spoons, ladles and pencil sharpeners; LED lights and lamps; drawing and marking out instruments will be hiked from earlier 12% to new rate of 18% from today. Leather goods too will become expensive with a hike in GST from 5% to 12%.

Also, solar water heaters will be costlier too, with GST rate increased from 5% to 12%.

As per PTI, some services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will see tax going up to 18% from the earlier 12% GST rate.

For the uninitiated, last month, the GST Council, chaired by Union finance minister Nirmala Sitharaman and comprising her state counterparts, had pruned the exemption list and imposed tax on a host of goods and services.

The Council, based on an interim report of the Group of Ministers (GoM) on rate rationalization, had also removed duty inversion for goods where the taxes on inputs were higher than those on the output.

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Other Changes In GST Rates

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However, some goods and services are expected to become cheaper. GST on ostomy appliances and on the transport of goods and passengers by ropeways to 5% from July 18, down from an earlier rate of 12%.

Also, electric vehicles, whether or not fitted with a battery pack, would be eligible for the concessional GST rate of 5% from July 18th, i.e. today.

Renting of trucks, goods carriages where the cost of fuel is included will now attract a lower 12% rate as against 18%.

GST exemption on the transport of passengers by air to and from northeastern states and Bagdogra will be restricted to economy class only, the report mentioned.

Services rendered by regulators such as the RBI, IRDA and SEBI will be taxed at 18% and so will the renting of a residential dwelling to business entities.

Bio-medical waste treatment facilities shall attract 12% GST. Besides this, individuals will only be able to claim GST exemption for training or coaching in recreational activities relating to arts or culture or sports.

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