GST rates changes to be applicable from 18 July

The GST Council has decided to impose GST on some items. The GST Council has again withdrawn the tax exemption on some items. So, GST rates on some items have been increased. The new tax hike will take effect from July 18.

The decision was taken at a meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman. She told in a news conference after the council meeting that the proposal on taxes on casinos, online gaming and horse racing has been sent to the ministerial group for reconsideration. Goa's finance minister has insisted on discussing the GST rate on casinos. Therefore, GST on these three things will be reconsidered, she said.

GST has been imposed on packaged and labeled (except frozen) foods. In this, five per cent GST will be levied on puffed rice including fish, curd, cheese, lassi, honey, soybeans, peas etc. So far these substances were exempt from GST. In addition, 18 per cent GST will be levied on the fee charged by banks for the issue of cheques (lose or in book form). Maps and charts, including atlases, will attract a 12 per cent levy, while goods that are unpacked, unlabelled and unbranded will continue to remain exempted from the GST..

GST has also been imposed on the rates of budget hotel and hospital rooms. Until now, GST was not levied for rooms with a daily rental rate of Rs 1,000. Now, a 12 per cent tax has been imposed on these rooms. In addition, five per cent GST will be levied on rooms (excluding ICU) for patients in the hospital with a fee of more than Rs 5,000.