GST revised rates to take effect from July 18; Here's What gets Costlier & Cheaper

On Wednesday, the Union Finance Minister Nirmala Sitharaman chaired the 47th GST council meeting in Chandigarh and decided to levy taxes on pre-packed food items, dairy, and agriculture products. The changes advised by the GST council will come into effect from July 18, 2022. The GST council has made the following recommendations relating to the GST rates of Goods and Services:-

Here's the full list of Items getting costlier & cheaper post-GST Revision 

Items that got Costlier 

• Packaged Food: The GST panel has accepted the recommendation to bring packed food items under the GST ambit. It has been recommended that pre-packed food items like pre-labelled curd, lassi, fish, meant, paneer, and buttermilk will get costlier and attract a 5% tax.
• Bank Cheque Book Issuance: The GST council has decided that 18 percent GST will be levied on fees charged by banks for the issue of cheques both loose or in book form
• Hotel Rooms: The GST Council also decided to bring hotel rooms costing under Rs 1,000 per day and will now charge 12% tax, as opposed to the tax exemption category at present.
• Hospital Beds: Hospital beds (excluding ICU) exceeding Rs 5000 per day per, the patient will be charged by a hospital and shall be taxed at 5%  
• Solar Water Heaters: The heater which earlier had 5% GST will now increase to 12%
• Meanwhile, the GST council has decided to increase the taxes on LED Lights, Lamps, Knives, Pumps, and machines, printing, and writing inks, and drawing and marking instruments, and work contracts for roads and bridges have been raised to 18%

Items that got Cheaper

• Ropeway Rides: The GST council has slashed the rates of GST from 18% to 5% with Input Tax Credit services on the transport of goods and passengers through ropeways 
• Electric Vehicles: GST slashed by 5%
• Goods Carriage Rent: GST slashed from 18% to 12% on renting of goods carriage with operators where the cost of fuel is included in the consideration.
• Orthopedic Appliances: Splints and other fracture appliances; artificial parts of the body;  appliances that are worn or carried, or implanted in the body, and intraocular lenses will now be charged a GST rate of 5% as opposed to 12% earlier.

(Image: PTI/Shutterstock)