GST rates raised again, take out your cheque books. Wait, that’s taxed too

Jun 30, 2022

By: Bhakti Makwana

GST meet update

The GST council in a recent meeting decided to bring new items under the tax ambit and raise cess on few goods and services, which are to be effective from July 18, 2022. Let’s get to know the revised tax rates on items that will affect your household budget.

Credit: Pixabay

Meat and diary

Packaged and branded food items (except frozen) like meat, fish, crud, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri) have been brought under tax slab under the five percent slab.

Credit: Pixabay

Lost cost hotel rooms

Hotel rooms under ₹1,000 per day, which were not taxed earlier will now attract a 12 percent tax.

Credit: Canva

Hospital rooms

Non-ICU hospital rooms under ₹5,000 per day, that were exempted from GST will now be charged with a five percent tax.

Credit: Unsplash

Cheque books too

An 18 percent tax will be charged on fees charged by banks upon the issuance of cheque books.

Credit: Canva

Maps and charts

Maps and charts including atlases will now attract 18 percent GST.

Credit: Canva

Tableware and lamps

Taxes on knives, spoons, forks, ladles, LED lamps and lights, water pumps, deep tube-well turbine pumps and submersible pumps have been raised to 18 percent from 12 percent.

Credit: Canva

Solar water heaters

Taxes on solar water heaters and systems raised to 12 percent from 5 percent earlier.

Credit: BCCL

Chakkis and grinders

Machines for cleaning, sorting, or grading seeds and grain pulses, pawan chakki, and wet grinders will now attract 18 percent tax as against 5 percent presently.

Credit: BCCL

Ropeways

Tax rates on transport of goods and passengers via ropeways will be taxed at 18 percent as against 5 percent earlier.

Credit: BCCL

Polished diamonds

Cut and Polished diamonds will attract a tax of 1.5 percent from 0.25 percent currently.

Credit: Canva

Truck renting - GST lowered

Tax on renting of trucks/goods, which includes cost of fuel, has been reduced to 12 percent from 18 percent earlier.

Credit: BCCL

Casinos - pending decision

The decisions on the taxation of online gaming, casinos, and horse racing has been deferred to the next GST meeting. It is likely that the government would increase taxes to 28 percent from the current 18 percent.

Credit: Canva

Although FII flows have reversed, retail investor confidence remains low thanks to macro concerns