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Will GST hike kick the common man’s pocket?

The recent amendments made by the GST council in its 47th meeting came into effect from 18th July, 2022. Consumers will now have to shell out more as the GST rate for several goods and services have been increased. The Finance Minister said that the increase in the GST rate is intended to make up for the loss incurred in the value chain. However, the opposition is up in arms due to the hike.


 There are a number of items including pre-packaged foods which are hiked due to the government removing the items from the exempted list. Pre-packed and labelled foods like curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice, all goods and organic manure and coir pith compost, meat- fish (except frozen) will now be charged 5% GST. Unpacked, unlabeled and unbranded goods continue to remain exempt from GST.


 The CBIT (Central Board of Indirect Taxes) has issued a set of FAQs on GST applicability on pre- packed and labelled goods to clarify certain doubts and queries. Items like pulses, cereals like rice, wheat and flour (aata) attracted GST at 5% when branded and packed in unit container however these items now would attract GST when prepackaged and labelled. This is the change in modalities of imposition of GST on branded specified goods to pre-packaged and labelled specified goods.


 GST Slab


Under 12% GST Slab:


•All forms of the king of fruits, “Mango”, including mango pulp will now be charged 12% GST. Mango sliced, dried mango, raw mango or fresh mangoes will continue to remain exempt.


•Hotel Rooms below ₹1000 per day will be levied.


•Stationery items like Map & Charts, including atlases


•Finished goods like leather products


•Solar water heater which was under the 5% bracket will now come under 12% slab            


 


Under 18% GST Slab


•Items sold in tetra packs


•LED lamps


•Services such as work contracts for road, bridges, railways metro


•Printing, writing and drawing ink


•Market infrastructure institutions or persons dealing in securities market will now have to pay GST on the fees and charges paid to market regulator SEBI


•Bank Cheques


 


What gets cheaper after revisions:


From 12 % to 5%


•Equipment for transport


•Ostomy appliances


•Equipment for residential evacuation by ropeway


•Selected orthopedic services


•Electric vehicles


 


From 18% to 12%


•Goods carriage rent


•Trucks and goods vehicles


Training or coaching in recreational activities, transport by air to and from northeastern states and Bagdogra for economy class are items exempted from GST.


The GST Council’s first meeting this year was held in Chandigarh on 28th and 29th June, 2022. It is headed by Union Finance Minister, Ms. Nirmala Sitharaman and comprises finance ministers and other representatives of all states and Union territories. The collections have increased during the year but have come after a long setback due to the slowdown created by the pandemic.


Edited by : Sreyoshi Mitra


 


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Tags: #tax #gst #gsthike #gstrates #gstcouncil



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