Government To Hike GST On Plenty Of Goods & Services From July 18

Union Finance and Corporate Affairs Minister Nirmala Sitharaman in Lucknow (Photo/ANI)

The Goods and Services Tax (GST) is raised for the several items, including LED lamps, solar hot water systems, and various job works, according to the officials, after the discussed at the two-day 47th GST Council meeting in Chandigarh on Wednesday.

Ink for writing, sketching, or printing as well as LED lamps, lighting fixtures, and their metal printed circuit board now have an 18% GST instead of a 12%.

Solar water heaters and systems,  job work related to the manufacture of leather goods and footwear now have a GST charge of 12% as previously from 5%.  In addition, the rate for works contracts for roads, bridges, trains, metro, effluent treatment plants, and crematoriums has been raised from 12% to 18%.

Furthermore, the Council raised the tax on tetra packs from 12 to 18 percent and the tax on cut and polished diamonds from 0.25 to 1.5 percent.

The Council also suggested lowering the rate for a few goods.

GST rate on ostomy, certain orthopaedic appliances has been reduced to 5 per cent from 12 per cent, besides lowering the rate on transport of goods and passengers by ropeways to 5 per cent from 18 per cent.

The Council reduced the rate on renting of truck/goods carriage where the cost of fuel is included to 12 per cent from 18 per cent. The rate changes recommended by the GST Council will be effective from July 18, 2022.

The Chairman of the Central Board of Indirect Taxes (CBIC) Vivek Johri said that GST Council has done rate rationalization to remove the inverted duty structure. “Those items where rate have been increased would not have much impact on consumers as most of the items are used in business to business activities,” Vivek Johri told ANI.

“Items like Printing, writing or drawing ink, knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers will not have much impact on consumers, said Johri, adding that there are some relief to consumers too,” he added.

Conrad Sangma, the chief minister of Meghalaya, with a group of Ministers to examine issues related to casinos, racecourses, and online gaming. The group will reexamine the issues in its terms of reference based on new information from the States, and it will submit a report by July 15 that will be made official at the GST council meeting, which will be held in Madurai the first week of August.

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