New GST Rates 2022: New GST Rates come into effect from July 18- Check what is costlier, what is cheaper?
New GST Rates 2022: The new GST rates came into effect from July 18, 2022. The new GST tax structure was approved during the 47th meeting of the GST Council that took place last month in Chandigarh. With this, several food items have become costlier including products like paneer, rice, wheat, jaggery, curd and lassi that are pre-packaged and labelled.
These day-to-day household items will attract 5 percent GST from July 18. Dried makhana, puffed rice, meslin flour, labelled meat and fish will also attract 5 percent GST. All these items were exempted from GST tax earlier. Besides this, 12% GST will now be charged on all forms of mango including mango pulp. However, loose, unbranded and unlabelled goods will continue to remain exempted from GST.
The GST rates for hotels and bank services have also been hiked. The new GST rates for Bank services including the fee charged by banks for issuing cheques will now be 18 percent. Hotel rooms will also get expensive, as now 12 per cent GST will be levied on hotel rooms, as against current exemption from GST.
New GST Rates 2022: What has become Costlier?
Food Items- 5 percent GST will be levied on pre-packed, labeled food items including rice, wheat, atta, paneer, curd, jaggery, lassi, butter milk, labelled meat (except frozen) and fish.
12% GST will now be imposed on all forms of mango including mango pulp. ( The raw and fresh mangoes will continue to remain exempted from GST)
18 percent GST will be levied on tetra packs.
Hospital Rooms- 5 percent GST will be imposed on hospital rooms with rent above Rs 5,000.
Maps and Charts-12 percent GST will be imposed on maps and charts including atlases.
Bank Services- 18 percent GST will be imposed on fees charged by banks for issue of cheques.
Diamonds: The GST rate on cut and polished diamonds has been increased from 0.25 per cent to 1.5 per cent.
Leather-The gst rate on finished leather has been increased to 12 percent.
Hotels- 12 per cent GST will be imposed on hotel rooms up to Rs 1,000 per day.
Printing/ Drawing Ink- The GST rate for printing, drawing ink, writing, pencil sharpners, paper knives, knives with cutting blades, LED lamps and marking out instruments has been hiked from 12 percent to 18 percent.
Solar Heaters-The GST on solar water heaters has been increased from 5 percent to 12 percent.
Work contract services- The GST rate for work contract services such as bridges, roads, metro, railways, crematoriums and treatment plans has been increased from 12 percent to 18 percent.
Milling machinery- The GST Rate on machines used in mills or cereals industry has been increased from 5 percent to 18 per cent.
New GST Rates 2022: What has become cheaper?
- No GST rate will apply on air transport of passengers to and from northeastern states and Bagdogra in the economy class.
- GST rate on renting of trucks and goods carriages (where cost of fuel is included) has been reduced from 18 percent to 12 percent.
- A concessional GST rate of 5 percent will be applicable on electric vehicles.
- The GST on transport of goods and passengers by ropeways has been cut from 12 percent to 5 percent.
The following food items will get costlier starting from July 18th-
Curd, Lassi, Buttermilk -5% GST
Rice, Wheat, Rye, Barley, Oats- 5% GST
Wheat & Meslin Flour- 5% GST
Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery – 5% GST
Khandsari Sugar -5% GST
Natural Honey -5% GST
Flattened Rice, Puffed rice (Muri), (Chira), parched rice (khoi), rice coated with
Sugar (Murki) – 5% GST
Rice Flour -5% GST
Tender coconut water – 12% GST
What is GST?
The Goods and Service Tax is a single, indirect tax that is imposed by the central government. The tax was introduced on July 1, 2017.