Home Household items Household items that will be more expensive from July 18

Household items that will be more expensive from July 18

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New Delhi, first published July 17, 2022, 2:10 p.m. IST

With the coming into force of the Goods and Services Tax Board ruling, people will have to pay 5% GST on pre-packaged and labeled food items like flour, paneer and curds. Also, maps and charts including atlases and hotel rooms with rates up to Rs 1,000 per day will attract 12% GST.

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On tetra packs and fees charged by banks for issuing checks (bulk or in book form) will come with 18% GST.

The GST Board, chaired by Union Finance Minister Nirmala Sitharaman and made up of her state counterparts, had reduced the exemption list last month and imposed a tax on various goods and services.

The council scrapped duty reversal for goods, where taxes on inputs were higher than those on output, based on an interim report by the group of ministers on rate rationalization.

To correct the reverse duty anomaly, tax rates were revised from 12 percent to 18 percent on products such as sharp knives, letter openers, and pencil sharpeners; printing, writing or drawing ink; draw and mark instruments and LED lamps.

Solar water heaters will also be subject to a 12% GST, compared to 5% previously.

Services such as labor contracts for railways, metro, roads, bridges, crematoriums and effluent treatment plants will also increase from 12% to 18%.

Taxes will be reduced on ostomy appliances and on the transport of goods and passengers by ski lift have been reduced from 12% to 5%.

Reduction also in the cost of renting a truck or transporting goods where the cost of fuel is included. This will now attract a 12% lower rate.

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The GST exemption on air passenger transport to and from the North Eastern States and Bagdogra will be limited to economy class only.

Services rendered by regulators such as RBI, IRDA and SEBI will be taxed at 18%, as will the rental of residential accommodation to commercial entities.

Biomedical waste treatment facilities will be subject to 12% GST, while hospital rooms other than intensive care units exceeding Rs 5,000/day will be subject to 5% GST, without the tax credit on inputs, to the extent of the amount charged for the room.

In addition, individuals will only be able to claim the GST exemption for training or supervision in the context of recreational activities related to the arts, culture or sports.

In addition, electric vehicles, whether battery-equipped or not, would be eligible for the preferential GST rate of 5% starting July 18.

Last updated July 17, 2022 at 2:10 PM IST