Friday, August 19, 2022

New GST Rule, GST Council Meeting: Unbranded rice and flour will also be…

The Goods and Services Tax (GST) Council on Tuesday decided to correct several tax rates and withdraw some tax exemptions. This will increase the price of many items. This decision taken by the government can help in earning more revenue in the era of high inflation. There is no change in the GST rate on gold and jewellery.

The 47th GST Council meeting is underway in Chandigarh under the chairmanship of Union Finance Minister Nirmala Sitharaman. The Finance Ministry said that the meeting was attended by the Finance Ministers of the States and Union Territories and senior officials of the Central Government and the States, besides the Union Minister of State for Finance. Today, the second and last day of the meeting on Wednesday, the council is likely to demand from states including Kerala and Delhi to extend GST compensation beyond June and impose a uniform 28 per cent GST rate on online gaming, horse racing and casinos.

Also READ  LIC's Special Campaign Starts Chance To Start Lapse Policy Till October...

GST New Rule: Will it be cheaper or more expensive?

  • After the meeting on Tuesday, 5% GST has now been levied on pre-packaged and labeled food items (except frozen) like meat, fish, curd, cheese and honey.
  • Additionally, non-branded items like flour and rice will attract 5% GST if they are pre-packaged and labeled. Presently, 5% GST was applicable only on the branded versions of these items.
  • The charges that banks charge for issuing cheques will also now attract GST.
  • Dry legumes vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, murmura (muri), all goods and organic manure and coir pith manure will now attract 5 per cent tax.
Also READ  PM Kisan Samman Nidhi: 12th class may come in the first week of September.

Now 12 to 18 percent GST will be levied on these items
According to a Mint report, the GST rate will now be increased from 12 to 18 percent on items like printing, writing and drawing ink, certain knives, spoons and tableware, dairy machinery, LED lamps and drawing instruments. The rates for solar water heaters and finished leather are expected to rise from 5 to 12 per cent. Also, unpacked, unlabeled and unbranded goods will be exempt from GST.

GST on taking a room in a hotel
If you buy a hotel room for less than Rs 1,000 per day, you will have to pay 12 per cent tax, which is currently under tax exemption. Along with this, the GST Council has recommended a hike in the GST rate for several items including edible oil, coal, LED lamps, printing and drawing inks, finished leather and solar water heaters.

Also READ  Started In 1995 By Selling Books Online The World's Largest Company Is...

Discussion of increase in GST on these items
The council is likely to discuss on Wednesday the implementation of 28 per cent GST on casinos, online gaming as well as seeking extension of compensation paid to states for their taxes such as sales tax (VAT) to be included in the national GST.

Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular