The government recently announced Hike in GST prices over the country. The rise in the goods and services tax is imposed to fulfill the inefficiency in the value chain of the market. The GST pricehike will be implemented from 18th July 2022, as approved by the Goods and Services Tax (GST) council. The Finance Minister Nirmala Sitharaman confirms the same.
Of the total 143 items, 92 percent are proposed to be shifted from the 18 percent slab to the top 28 percent slab. Currently, there are four GST slabs- 5 percent, 12 percent, 18 percent and 28 percent. The 18 percent slab has 480 items, from which 70 percent of the GST collections come.
The rise in GST will potentially raise the revenue collection and it will even correct the anomalies in tax collection. The council gave the group of ministers (GoM) on rate rationalisation another three months to give its recommendations. The council will conduct another meeting in August first week to discuss the recommendations.
What becomes expensive?
Solar water heaters, leather goods, textiles comes in the 5-12% category
Printing and writing ink as well as LED lights will tax at 18%
Daily rent of Rs 5,000 Hotel rooms, except ICU, taxed 5% without input tax credit.
E-waste will be taxed at 5 -18%
5%- Coffee beans, unprocessed green leaves of tea, wheat bran and de-oiled rice bran
Updated GST rates :-
143 items may see upward revision in GST rates
The 5% rate is said to be reformed next month by GST Council
Coaching institutions to pay 18% goods and services tax on composite supply
The GST Council defers rate hike on textile
GST on clothing, textiles, and footwear increased from 5% to 12% beginning in January
Reduction in GST Tax on Indian Biodiesel Blending
GST Exempt For Hotels With Price Less Than ₹1,000/- Per Day
Latest GST tax slab rates for goods categories :-
GST on food and beverages items - Several items under the category have reduced GST rates.
GST on household goods of daily use - New GST rates stand reduced for several items under the category of household goods. Those with earlier 18% GST now have 12% or 5% GST. Those with 28% of GST have 18%, 5%, and even nil GST rates.
GST on educational items - For several goods under the category, GST rates have been reduced from 28% to 12%
GST on medical and health items - For goods under the medical and health category, GST stands reduced from 12 % to 5% and 0% for separate items.
GST on agriculture items - Agriculture items with an earlier GST of 12% have 5% GST. Items under the category with an earlier GST rate of 18% now have reduced GST of 12%.
GST on infrastructure/fuel/environment items - Items in this category with an earlier GST of 28% now have a GST of 18%. Items having a GST rate of 18% previously now have 12%.
GST on safety and security items - No major changes have been announced from earlier prevailing rates of 18%.
GST on miscellaneous items - Several items with a GST of 28% now have 18% GST, those with 18% now have 12%, and those with 5% now have 0% GST.