The GST council has revised the rate of some of the daily used items in its recent order. With the new decision, Consumers may have to shell out more as several goods and services will cost higher from July 18 onwards. There will be an increase in the price of packeted foods. But some other goods and services are falling in price. Let’s check out what’s costlier and what’s cheaper
The items that will get costlier
- As per legal metrology law, Single packages of food items like cereals, pulses and flour weighing up to 25 kg will be considered as ‘prepackaged and labelled’, and liable to 5% GST. Other items such as curd, lassi, and puffed rice too would attract GST at the rate of 5% when pre-packaged and labelled.
- Items like Printing, writing, or drawing ink, knives with cutting blades, paper knives, pencil sharpeners and blades, spoons, forks, ladles, skimmers, and cake-servers would now attract 18% instead of 12%. LED lamps and solar water heaters will attract 18% tax. Tetra Pak (or aseptic packaging paper) used for packaging liquid beverages or dairy products will now attract 18% GST instead of 12%.
- A 12 percent GST will be imposed on maps and charts – including atlases. 18 percent GST will be levied on fees charged by banks for the issue of cheques. Services including work contracts for roads, bridges, railways, metro, effluent treatment plants, and crematoriums will see an increase in the GST to 18 percent from the current 12 percent.
- 12% GST on hotel rooms with rent up to Rs.1000 per day. Hospital rooms with rent above Rs.5000 per day – 5% GST.
The items that will get cheaper
- Prices of some defense sector products imported by private firms will be reduced. Tax on the movement of goods will be reduced from 12% to 5%. GST on freight lorry hire will be reduced from 18% to 12%.
- GST exemption for air travel from North Eastern states and Bagdogra will now be applicable only for economy class. GST has been reduced for artificial organs. Tax on such services has been reduced from 12 to 5. There will be a reduction in the price of all the devices in the body related to health problems.
Tax exemption on training or coaching in recreational activities relating to arts or culture or sports is being restricted to such services when supplied by an individual. Moreover, electric vehicles will be eligible for the concessional GST rate of five percent.