The common man will have to shell out more for household items, bank services, hospitals and hotels from next week, June 18 after Finance Minister Nirmala Sitharaman’s big decision to hike GST on essential items and services.
From July 18, the prices of several essential commodities and services are going to increase. The decision was taken at the 47th GST meeting chaired by FM Nirmala Sitharaman that GST rates will increase on some household products and services from July 18, 2022.
Prices of agricultural commodities including pre-packaged labels like cheese, lassi, butter milk, packaged curd, wheat flour, other grains, honey, papad, cereals, meat and fish (excluding freezing), mudi and jaggery are set to go up from July 18. Taxes on these products have been increased. Currently, 5 per cent GST is levied on branded and packaged food items. Products without packs and unlabeled are tax free.
GST on the following items are going to be hiked from July 18. Here is the full list
– The prices of tetra pack yogurt, lassi and butter milk will go up as it will be levied 5% GST from July 18 onwards, which was not applicable earlier.
– The service tax that the bank used to charge earlier to issue chequebooks will now attract 18% GST.
– A 5 per cent GST will be levied if rooms worth more than Rs 5,000 (non-ICU) are rented out in hospitals.
– Apart from these, now even maps with atlases will be levied GST at the rate of 12 per cent.
– Hotel rooms with less than Rs 1,000 per day will be charged 12 per cent GST, which has not been levied earlier.
– LED light LED lamps will attract 18 per cent GST, which was not applicable earlier.
– Blades, paper-cutting scissors, pencil sharpeners, spoons, forks, skimmers and cake-servers were earlier GST of 12 per cent, which is increasing to 18 per cent.