New GST rate: Hotel stays, staples, LED lights will cost more from today, EVs to get cheaper – Times of India

July 18, 2022 by No Comments

NEW DELHI: Customers will have to pay more on certain products and services from today as a series of decisions by the GST Council takes effect. In June, the GST Councilhad imposed tax on a host of goods and services. Certain items are set to attract higher Goods and Services Tax (GST) while the tax outgo on certain things are set to come down.
Here is what will get more expensive:
Hotel stays: If the room rent is upto Rs 1,000 per day, there will now be a GST of 12% levied on it. Up until now, rooms priced at Rs 1000 or below were exempt from GST. This means that for all rooms priced upto Rs 7,500, there will be a common GST levy of 12% while for those rooms priced above Rs 7,500, the GST will be 18%.
Staples: Whole wheat flour (atta), curd, cottage cheese (paneer) as also packaged lassi and buttermilk will now attract a GST of 5%. Earlier they were exempt from GST. The Central Board of Indirect Taxes and Customs on Sunday said single packages of food items like cereals, pulses and flour weighing up to 25 kg will be considered as ‘prepackaged and labelled’, and liable to five per cent GST from July 18. It also clarified that if a retail shopkeeper supplies in loose quantity the item bought from a manufacturer or a distributor in a 25-kg pack, such sale to consumers will not attract GST.
Bitter pill: Non-ICU hospital rooms charging more than Rs 5,000 per day will attract a GST of 5%, without any input tax credit being available. It would be applicable on nursing homes and sanatoria as well. They were earlier exempt from GST.
Eco unfriendly:LED lights will now attract a GST of 18% from 12% earlier while solar water heaters will attract a GST of 12% from today as against just 5% earlier. Effluent treatment plants and crematoria will be levied a GST of 18% vis-a-vis 12% earlier. Bio-medical waste treatment plants shall also attract a levy of 12% GST, from none earlier.
Knives are out: Knives with cutting blades, paper knives and pencil sharpeners, as also ink for printing, writing or drawing along with drawing and marking out instruments will be levied a GST of 18% from today, against the 12% till now. Printed charts and maps will also attract a 12% GST while banks will henceforth levy 18% GST on cheque books or loose cheques.
Cheque books: 18 per cent GST on fees will be charged by banks for the issue of cheques (loose or in book form).
Solar water heater will now attract 12 per cent GST as compared to 5 per cent earlier.
Services: Services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums will see tax going up to 18 per cent from the current 12 per cent.
What will cost less:
Electric vehicles (EV) will be cheaper due to a reduction in the GST charged on their batteries — which make up 50% of the cost of an EV — from 18% to 5% and hence all EVs, with or without battery packs will attract a 5% GST.
There’s also a GST reduction from 12% to 5% on ostomy appliances used in medicare as also for transport of goods and passengers by ropeways. Renting of trucks and goods carriages where the cost of fuel is …….

Source: https://timesofindia.indiatimes.com/business/india-business/hotel-stays-staples-led-lights-will-cost-more-from-today-evs-to-get-cheaper/articleshow/92946399.cms

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