New GST Rates have confused the common man more than ever before because it would directly impact their budget. And the damage is visible since Monday, July 18.
Now, consumers have to pay an extra 5% GST on pre-packaged foods as per the revised rates 2022. A few items are also exempted from the tax slab but it won’t make much difference to the buyers’ budget.
All the changes were made in the 47th GST Council Meeting that took place on June 28 and 29. It was chaired by Finance Minister Nirmala Sitharaman, state ministers, and Minister of State for Finance.
New GST Rates on Pre-Packed and Labelled Goods
via:hmtv
On Sunday, a clarification came from the Central Board of Indirect Taxes and Customs (CBIC) regarding new changes on ‘pre-packed and labelled goods.’
According to Legal Metrology Act, 2009, single packaged food items upto 25 kilogram of quantity come under this category. Thus, GST is applicable on these items.
Any packed item weighing more than 25 kilogram is not liable for GST. However, food items such as flour, pulses or any other item available for selling in loose quantity is out of the GST net.
But this is applicable only when retailers purchase pre-packaged commodity (sealed or unsealed) from manufacturers or distributors.
Which Items Are Getting Expensive?
via:eatthisnotthat
Items falling into 5,12, and 18 % tax slab will get affected after the GST revised rates come into effect. Here’s a list of supplies whose price has increased:
New Entry in 5% GST slab
- Single packed foods
- Lassi, curd, paneer
- Non-ICU rooms in hospitals renting Rs 5000/day
- Concessional GST on electric vehicles
Products Under 12% GST Slab
- Maps
- Globes
- Atlas
- Hotel rooms upto Rs 1000/day
Items Under 18% GST Slab
- LED lamps
- Packaging products of liquid beverages
- Cheque books
- Solar water heaters
- Dairy machinery
- Seed cleaning and grading machines
- Milling machines
- Milking machines
- Cutting blades
- Printing ink
- Knives
- Spoons, forks, and ladles
- Cake servers, etc…
Diamonds (both cut and polished) will also attract tax of 1.5% which was earlier 0.25%.
Also Read: No Toll Tax For People Mentioned In THIS List
Items Getting Cheaper After GST Revised Rates
While the commonly used items and machines have got expensive, a few products will see a price cut as they are put in lower tax slab
via:outlookindia
- Transportation of passengers and goods via ropeways
- Accessories implanted on disable people
- Fracture appliances
- Artificial body parts
Tax on renting trucks for good supply fell from 18% slab to 12%. Click here to know full GST revised rates