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GST new rates explained: Full list of items, services to get costlier

The GST council has given its nod to changes in Goods and Service Tax rates on a number of items and services. Here are changes in GST rates that you need to know about.

HIGHLIGHTS

  • 18 per cent GST will be levied on fees charged by banks for the issue of cheques
  • Maps and charts, including atlases, will attract a 12 per cent levy
  • 12 per cent tax on hotel rooms below Rs 1,000 per day will be levied

A number of items are set to attract Goods and Service Tax (GST) after the GST Council approved changes in the tax rates on some goods and services with a view to rationalising the levy.

The decision was taken by the GST Council – the highest decision-making body on the levy of goods and services tax, headed by Union Finance Minister Nirmala Sitharman and comprising representatives of all states and UTs.

Here is a list of items and services that will attract GST

  • Pre-packed and labelled meat (except frozen), fish, curd, lassi, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost will not be exempted from GST and will now attract a 5 per cent tax.
  • The GST Council also recommended a correction to the inverted duty structure for a host of items, including edible oil, coal, LED lamps, printing/drawing ink, finished leather and solar water heater.
  • An 18 per cent GST will be levied on fees charged by banks for the issue of cheques (loose or in book form).
  • Maps and charts, including atlases, will attract a 12 per cent levy.
  • Goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST.
  • Besides, a 12 per cent tax on hotel rooms below Rs 1,000 per day will be levied, as against a tax exemption currently.
  • With regard to e-way bill on intra-state movement of gold, gold jewellery and precious stones to check evasion, the Council recommended that states can decide on the threshold above which the electronic bill is to be made mandatory.
  • Apart from these, the Council is likely to discuss on Wednesday a 28 per cent tax on casinos, online gaming and horse racing.

WHAT IS GST?

The GST is a single, indirect tax levied by the central government. The GST was introduced on July 1, 2017, and states were assured of compensation for the revenue loss till June 2022, arising on account of the GST rollout.

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