GST Rate Changes: List of Items Getting Expensive and Cheaper From July 18

July will make a bigger hole in the common man’s pocket as a few items are getting expensive soon. GST rate changes are done on Wednesday after the 47^th Council Meeting in Chandigarh.

Finance Minister Nirmala Sitharaman has accepted the recommendations of four GoMs in the meeting. And all the changes will come into effect from July 18.

This will put pre-packed as well as a few unpacked items under the slab of GST. Get the full list of items that are going to put a burden on the public’s budget here.

What’s Getting Costlier Under GST Rate Changes?

Packaged Food items are now in the tax slab of 5%. It means all the food items that come under labeled food and packed food will get costly. This includes:

• lassi
• curd
• puffed rice
• wheat flour
• butter milk
• cereals
• dry foods and vegetables
• honey, etc

Also, food items like grains which were exempted from GST for being unbranded will now attract GST rate change. But, unpacked items which are unbranded still get exemption.

1. Maps, atlas, charts will fall under 12% GST slab
2. Hotel rooms under Rs 1000/day are also included in the same slab
3. GST revised rates also include hospital charging Rs 5000/day for beds at a 5% tax
4. Lighting fixtures, circuit boards, LED lamps, and marking instruments will be available at a price hike including 18% GST from next month
5. Re-issuing of cheque book will come with additional fee of 18% as GST
6. Kitchen knives, paper knives, spoons, forks, and every equipment that fall under category of knives will have 18% GST
7. Any sort of pumps and machines for cleaning, gardening, and milling will attract 18% GST
8. GST rate changes for leathers ( finished, prepared, composition, and chamois) goes up from 5 to 12%

List of Items Getting Cheap under GST Rate Changes

1. Reduced rate on transportation of goods and services via ropeways
2. Good carriage rents
3. Fracture appliances, lens, splints
4. Defence items used by defence forces

Key Decisions of Meeting

GST council accepted Fitment Committee’s suggestion after careful consideration and without any opposition, said Finance Minister.

In the meeting, they discussed on changes in tax slab, rate rationalization, tax on online gaming, and more.

Here are the key decisions taken

1. States will decide the e-way bill for intra-state supply of gold and precious stones
2. No GST registration mandatory for online retailers for transactions within state. However, it is applicable only if transaction amount is less than Rs 40 Lakh
3. No decision on GST compensation cess for states
4. GoM on rate rationalization gets 3 months extension
5. GoM suggestions on IT reforms get approval from the council
6. High-risk taxpayers will go through a strict verification process. They will have to submit an electricity bill for registration which is mandatory.
7. Timeline for GST compensation cess levy extended until March 31, 2026.

However, no decision on 28% GST on online gaming. Decision on establishment of GST tribunal, GST Appellate tribunal and tax on Casinos is yet to be taken.

The council will decide on these matters in the next meeting. It will take place on August 1.