Revised GST rates: What gets cheaper, what gets costlier?

June 29: The two-day GST council’s 47th meet, held in Chandigarh, which was headed by Union Finance Minister Nirmala Sitharaman revised rates of several products. It was decided that the GST will continue to remain exempted from unpacked, unlabelled and unbranded goods.

Items that became costlier after GST rate revision:

Packaged Food: The GST panel has accepted the recommendation to bring packed food items under the GST ambit. “Hitherto, GST was exempted on specified food items, grains etc when not branded, or right on the brand has been foregone. It has been recommended to revise the scope of exemption to exclude from it prepackaged and pre-labelled retail pack in terms of Legal Metrology Act, including pre-packed, pre-labelled curd, lassi and butter milk,” said the GST Council in a press release.

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.

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.

Items that became cheaper after GST rate revision:

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.

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.

With inputs from news18.com