New Delhi: The tax rates on certain goods and services will rise from July 18. The decision was taken by the GST Council, the highest decision-making body on the levy of goods and services tax, headed by Union Finance Minister Nirmala Sitharman and comprising representatives of all states and UTs. The Council has decided to levy a GST on bank cheque book/loose leaf cheques and 12 per cent on maps, atlas, and globes. Similarly, unbranded but pre-packed curd, lassi, butter milk, food items, grains etc will be brought under the GST net from the exemption list. The rate rationalisation decision was taken at the two-day 47th GST Council Meeting.Also Read - New GST Rates: 10 Household Items That Will Cost More From July 18; Here's What Gets Expensive

Packaged Food: Pre-packed and labelled meat (except frozen), 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 will not be exempted from GST and will now attract a 5 per cent tax. However, goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST. Also Read - GST Rate Cut: List of Items That Will Become Cheaper From January 2019

Bank Cheque Book Issuance: An 18 per cent GST will be levied on fee charged by banks for the issue of cheques (loose or in book form), GST council has decided. Also Read - GST Rate Cut: CBEC Urges FMCGs to Immediately Revise MRP of Products to Benefit Consumers

Hotel Rooms: The GST Council also decided to bring hotel rooms under Rs 1,000 per day under the 12 per cent GST slab, as opposed to tax exemption category at present.

Hospital Beds: Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5 per cent without ITC.

LED Lights, Lamps: The prices of LED Lights, fixtures, LED Lamps are set to see a price hike as the GST council has recommended a correction in the inverted duty structure from 12 per cent to 18 per cent.

Knives: Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc have been placed under the 18 per cent GST slab, up from the 12 per cent slab.

Pumps and Machines: The GST Power driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps, Bicycle pumps have been increased from 12 per cent to 18 per cent. Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in milling industry or for the working of cereals etc, pawan chakki that is air-based atta chakki, wet grinder will also attract GST rates of 18 per cent as opposed to 12 per cent earlier.

Gold jewellery and precious stones: With regard to e-way bill on intra-state movement of gold, gold jewellery and precious stones to check evasion, the Council recommended that states can decide on the threshold above which the electronic bill is to be made mandatory.

Orthopedic Appliances: Splints and other fracture appliances; artificial parts of the body; other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability; intraocular lens will now attract a GST rate of 5 per cent as opposed to 12 per cent earlier.

Defence Items: IGST on specified defence items imported by private entities/vendors, when end-user is the Defence forces have been exempted from GST.

Ropeway Rides: The GST council has slashed the rates of GST on transport of goods and passengers through ropeways from 18 per cent to 5 per cent with Input Tax Credit services

Goods Carriage Rent: The GST Council has also slashed GST from 18 per cent to 12 per cent on renting of goods carriage with operators where the cost of fuel is included in the consideration.

Air travel:  GST exemption on the transport of passengers by air to and from northeastern states and Bagdogra was restricted to economy class. The exemption was also withdrawn from services by RBI, IRDA, SEBI and FSSAI.

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Published Date: June 30, 2022 9:02 AM IST

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