Ever since its introduction on July 1, 2017; the Good and Service Tax rate structure is witnessing some change or the other on a periodic basis. The GST Council on Wednesday approved major changes in the tax rates on some goods and services. The Council is chaired by the Finance Minister comprising of representatives of all states and Union territories. The highest decision making body introduced major changes in the rate structure.
Here’s everything you need to know:
Things adding a burden on your pockets:
Packaged Food: Exemption has been withdrawn from pre- packed and labelled meat (excluding frozen items), fish, curd, lassi, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost. The same will now be taxable at 5% tax rate.
Bank Cheque Book charges: The fees charged by banks for the issue of cheques both in loose and in book, will now attract 18% tax rate.
Hotel Stay: Hotel rooms which are rented out at less than Rs. 1000 per day were exempt till now. The same will now be taxed under the 12% tax rate.
Hospital Beds: The recent decision imposed a 5% tax rate on hospital beds, except ICU where the daily rent is Rs. 5000 or more. The same will not allow any Input Tax Credit now.
LED Lights, Lamps: The GST Council has recommended a correction in the inverted duty structure as well where 12% will be replaced by 18% making LED items costlier.
Maps and Charts: Atlases, Maps and charts have been inducted in the 12% rate cover.
Things to get cheaper
Goods Carriage Rent: Where the cost of fuel is included in the consideration, in case of renting of goods carriage, 18% ate has been replaced by 12% tax rate.
Ropeway Rides: Transportation of goods and passengers through ropeways will now attract only 5% GST rate instead of 18%. Input Tax Credit will also be allowed in this case.
Meanwhile, unpacked and unbranded goods will continue to remain exempt under GST. The Council is also planning to re-deliberate tax rate on horse racing, online gaming, casinos by July 15.