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GST Council Meeting: Pre-packaged food, fee for cheque issue to attract GST. Here’s what changes from July 18

The changes in the tax rates approved by the GST council will be effective from July 18, 2022. Now, 12 per cent GST will be levied on hotel rooms below Rs 1,000/day. An 18 per cent GST will be levied on the fee charged by banks for the issue of cheques (loose or in book form).

ET Now Digital

Updated Jun 29, 2022, 21:42 IST

New Delhi: The 47th GST Council Meeting, headed by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, concluded in Chandigarh on Wednesday. After the meet, FM Sitharaman said that the meeting did justice to the good work done by the Group of Ministers on four different matters, while announcing the decisions taken by the council.

A number of goods and items are set to attract GST after the council approved changes in the tax rates with effect from July 18, 2022. Here’s is a list of items on which either the GST rate has been tweaked or exemption from GST has been withdrawn by the council:

- Pre-packed and labelled meat (except frozen), fish, curd, 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 attract a 5 per cent GST.

- Unpacked, unlabelled and unbranded goods continue to remain exempt from GST.

- The GST rate on all forms of mango including mango pulp (other than mangoes sliced, dried) will be 12 per cent. Raw or fresh mangoes continue to be exempt.

- An 18 per cent GST will be levied on the fee charged by banks for the issue of cheques (loose or in book form).

- 12 per cent GST on hotel rooms below Rs 1,000/day will be levied, as against a tax exemption currently.

- Maps and charts including atlases will attract a 12 per cent levy.

- GST on e-waste increased to 18 per cent from earlier rate of 5 per cent.

- LED lamps, inks, knives, blades, power-driven pumps and dairy machinery’s GST to be raised to 18 per cent from 12 per cent.

- Tax on miling machinery for cereals will be increased to 18 per cent from 5 per cent.

- GST on solar water heater, finished leather will be increased to 12 per cent.

- GST on specified goods for petroleum will be increased to 12 per cent from 5 per cent on input goods to correct inversion.

- GST on work contract services supplied to govt, local authorities will be 18 per cent.

- GST on cut, polished diamonds increased from 0.25 per cent to 1.5 per cent.

- Transport of goods and passengers by ropeways to attract 18 per cent GST, up from 5 per cent (with ITC of services).

- Renting of truck/goods carriage where cost of fuel is included to attract per cent GST, up from 12 per cent.

In case of Services, following exemptions are being rationalized:

- Exemption on transport of passengers by air to and from NE states & Bagdogra is being restricted to economy class.

- Exemption on following services is being withdrawn:

Transportation by rail or a vessel of railway equipment and material.
Storage or warehousing of commodities which attract tax (nuts, spices, copra, jaggery, cotton etc.)
Fumigation in a warehouse of agricultural produce.
Services by RBI,IRDA,SEBI,FSSAI,
GSTN.
Renting of residential dwelling to business entities (registered persons).
Services provided by the cord blood banks by way of preservation of stem cells

- Room rent (excluding ICU) exceeding Rs 5,000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5 per cent, without ITC.

- Application fee charged for entrance or for issuance of eligibility certificate for admission or issuance of migration certificate by universities is exempt from GST.

- Due to ambiguity in GST rates on supply of ice-cream by ice-cream parlours, GST charged at 5 per cent without ITC on the same during the period July 1, 2017 to October 5, 2021 shall be regularised to avoid unnecessary litigation.

- The GST on tetra pack too would be hiked to 18 per cent from 12 per cent at present.

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