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New GST Rates To Be Applicable From Today

The changes in the GST charges will be applicable from Monday. As a result the customers will be obliged to pay more on certain products as per the decision taken by the GST Council

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The changes in the GST charges will be applicable from Monday. As a result the customers will be obliged to pay more on certain products as per the decision taken by the GST Council. 

After a series of decisions by the GST Council, certain items will be subject to Goods and Services Tax (GST), while others will see tax outgoing reduced.

Union Finance Minister Nirmala Sitharaman last month had announced taxes on certain goods and services. 

CAIT National President Shri BC Bhartia and Secretary General Shri Praveen Khandelwal said that from today onwards some goods are being taxed at five per cent or more, due to which there is every possibility of these items becoming costly putting a financial burden directly on the common man.

The List of Expensive Items

  • Labelled food items like atta, paneer, curd  will be charged five per cent GST taxes.  

  • Hospital rooms which cost more than Rs 5000, will be charged with five per cent GST

  • 12 per cent GST will be applicable on maps, charts and atlases.

  • 18 per cent tax will  be imposed on tetra packs

  • 18 per cent GST charge will be levied on fees imposed by the banks on the issuing of the cheques.

  • GST rates on products like printing, writing, or drawing ink, knives, with cutting blades, pencil sharpeners, paper knives; LED lamps; drawing and marking out instruments will be charged 18 per cent GST.

  • 12 per cent will be charged on solar water heaters. Earlier it was five per cent.

  • Tax has been increased from 18 per cent from 12 per cent  for services such as work contracts for road, bridges, railways, metro, effluent treatment plants and crematoriums.

Relaxations on Certain Goods and Services  

  • Tax will be reduced to five per cent on ostomy appliances and on transport of goods and passengers by ropeway from 12 per cent.

  • 12 per cent GST is applicable now on services of renting of truck, goods carriage, where the fuel cost is included. Earlier it was 18 per cent.

  •  With the continuous efforts of the Confederation of All India Traders (CAIT), the Union Finance Ministry has issued a clarification on the imposition of GST on unbranded food grains and other products, in which it has been clarified that this tax is applicable only on pre-packed and pre-labelled packing up to 25 kg. On a quantity of above 25 kg, there will be no GST applicable resulting in keeping wholesalers out of GST which is a big relief for the traders. At the same time, those who come under the purview of this tax will get input credit of the given tax, while there will be no tax on giving loose goods. Therefore, the implication of the tax remains on a section of the traders.

  • Passengers travelling by air between northeastern states and Bagdogra will only be exempted from GST in economy class.

  • From 18 July, electric vehicles fitted with battery packs or without will be eligible for a five per cent GST tax.

CAIT has announced to launch a nationwide movement from 26  July to demand a new GST law and its rules by reviewing the GST law and rules afresh for radical changes in GST. Both the trade leaders said that both the government and the traders have had many experiences in the last five years, so on the basis of those experiences, it is necessary to streamline the GST tax system so that this tax system can work permanently and traders can easily comply with taxes which will yield more revenue for the government.

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GST Tax new rules