GST Rate Hike: Here's What Will Get Costlier from Today?

New Delhi: The recommendations that were taken up in the two-day 47th Goods and Services Tax (GST) Council meeting in Chandigarh on June 28-29 are all set to be implemented from July 18 which will make consumers spend extra.

In the above-said meeting, the GST Council had decided to increase the tax rate on many items used by the common man, and at the same time, it also decided to eliminate the GST exemption on many things. So, there is some stuff which will be expensive from today and while some will get cheaper from today.

GST will be charged on these items

Five percent GST will now be levied on packaged and labeled fish, curd, paneer, lassi, honey, dry makhana, dry soybeans, peas, wheat, and other grains and rumored in boxes or packets and labeled (except frozen). Till now, these items were exempted from GST. Apart from these, 18 percent GST will be payable on check issuance service by Tetra Pack and Bank. Moreover, 12 percent GST will be charged on maps and charts including atlas.

Budget hotels and treatments will be expensive

Consumers will now have to pay extra if they go outside because from July 18, 2022, 12 percent GST will be charged on hotel rooms that are priced below Rs 1,000 per day. Along with this, five percent GST will have to be paid on rooms with a rent of more than 5,000 rupees except for ICU for hospitalized patients. In other words, admission to private hospitals is going to be expensive for you.

Ink-pencil sharpeners will be expensive

Things related to children's education will too become expensive now. The GST Council has decided to increase the GST rate on printing-drawing inks, pencil sharpeners, LED lamps, drawing and marking products, knives, and paper cutters. 18 percent GST will be charged on these items. Now, 12 percent GST will be levied on the solar water heater as against 5 percent GST earlier. Instead of 0.25 percent, 1.5 percent GST will be payable on the cut or polished diamonds.

Besides this, GST will now be 18 percent instead of 12 percent on LED lamps and lights.

Change in rules for GST exemption on air travel

GST exemption on air travel from Bagdogra to North Eastern states will now be available only on economy class travel. The concessional 5% GST on electric vehicles with or without batteries has been retained. Transport of goods and passengers through ropeway was earlier charged 18 percent GST but now 5 percent GST will be levied.

The GST Council has decided that hiring trucks will now be cheaper if the cost of oil is also included. Earlier 18 percent GST was charged now 12 percent GST will be given.

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