Key Takeaways:
- GST on everyday food items comes to haunt Indian households
- Even hospital beds are not spared.
NEW DELHI (CoinChapter.com) — The GST Council decided to end tax exemption on pre-packaged and pre-labeled edible items, including curd, paneer, and Lassi. A 5% GST will be levied on such products from July 18.
Intending to rationalize the levy, a group of ministers (GoM) from states on withdrawing exemptions recommended placing some products under the GST slab. The GST Council, headed by the union finance minister, Nirmala Sitaraman, accepted most of those recommendations, and now all these retail products will attract GST from next week.
The Central Board of Indirect Taxes and Customs announced the decision of the GST Council to remove the GST exemption from food products, including pre-packaged curd, Lassi, and buttermilk.
More food products under GST
Not only the milk product but the prepared and labeled meat (except frozen), fish, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri) will also attract a 5% tax.
Furthermore, an 18% tax on the fees charged by banks for the issuance of checks will be imposed from next week. A tax on hospital room rent (excluding ICU) of more than ₹5000 per day will also be levied. The hospital room rent and staying in the hotel room will also cost you more. A hotel room below Rs 1,000/day will attract a tax of 12%.
The prices of LED lights, fixtures, and lamps will also go up due to tax increases from 12% to 18% on these items. Even stationery items will also now attract a GST of 18%.
A 12% tax will be levied on charts and maps, including atlases. To boost the weighted average tax rate, which has fallen to 11.6% from 14.4% at the launch, it is important to end the exemption and rationalize it.
