Many household items, bank services, hotels and more will become costlier from today (July 18) as the GST rates hiked on several items at the 47th Goods and Services Tax Council meeting last month comes into effect today. The GST council had last month proposed to withdraw tax exemptions for a few items and recommended changes in rates for others.
Opposition leaders have raised concerns about the higher tax rate announced by the GST Council, saying it will place an additional burden on households.
India’s retail inflation came down to 7.04% year-on-year in May, after touching an eight-year high of 7.79%. However, the price rise indicator remained above the Reserve Bank of India’s tolerance band of 6% for a fifth consecutive month.
“The elected representatives who are part of the Council are conscious of inflation,” Union Finance Minister Nirmala Sitharaman had said on June 29 when asked if the GST rate changes could feed into the high inflation.
Here is a list of Goods and Services liable for 18% GST:
- LED lamps and lights
- Knives, spoons, forks and ladles
- Water pumps, deep-tube well turbine pumps, submersible pumps
- Diary machinery
- Tetra packs
- Fees charged by banks for the issue of cheques (loose or in book form)
- Services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums
List of Goods and Services liable to 12% GST:
- Solar water heaters
- Hotels charging Rs 1,000 or less per day for a stay
- Tender coconut water
- Finished goods like leather products
- Maps and charts, including atlases
- Renting of trucks and goods carriages where the cost of fuel is included
- Bio-medical waste treatment facilities
List of Goods and Services Liable to 5% GST:
- Curd, buttermilk and lassi
- Organic food
- Puffed rice
- Single packages of food items such as cereals, pulses and flour weighing up to 25 kg
- Hospital rooms with rent above Rs 5,000
- Ostomy appliances