Be prepared to spend more starting the next week on household items, hotels, and banking services. The Goods and Services Tax (GST) was raised for a variety of items after the suggestions made during the two-day 47th GST Council meeting in Chandigarh on Wednesday.
Also Read| India’s WPI inflation eases to 15.18% in June from record high of 15.88% in May
Prices for some key items and services will rise starting July 18. The GST on printing/writing/drawing ink, LED lamps, and fixtures, as well as their metal printed circuit board, has been raised to 18% from 12%. The GST rate for solar water heaters and systems has been raised from 5% to 12%.
Also Read| Retail inflation drops marginally to 7.01% in June
The GST on the following items will be increased beginning July 18:
1. Printing, writing or drawing ink – 18%
2. Knives with cutting blades, Paper knives, Pencil sharpeners and blades therefor, Spoons, forks, ladles, skimmers, cake-servers etc-18%
3. Power-driven pumps primarily designed for handling water such as centrifugal pumps, deep tube-well turbine pumps, submersible pumps; Bicycle pumps-18%
Also Read| US inflation rate at a 40-year high | A timeline: 1930-2022
4. Machines for cleaning, sorting or grading, seed, grain pulses; Machinery used in the milling industry or for the working of cereals etc; Pawan Chakki that is Air Based Atta Chakki; Wet grinder-18%
5. Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce and its parts, Milking machines and dairy machinery-18%
6. LED Lamps, lights and fixtures, their metal printed circuits board-18%
7. Drawing and marking out instruments-18%
8. Solar Water Heater and system-12%
Also Read| Asian stocks plummet, dollar strengthens as growth outlook dims
9. Prepared/finished leather/chamois leather/composition leathers-12%
10. Cheques, lose or in book form-18%
11. Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed-12%
12. Hotel accommodation priced up to Rs. 1000/day shall be taxed at 12%
13. Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital shall be taxed to the extent of the amount charged for the room at 5% without ITC.
Also Read| Oil prices surge ahead of expected US Fed interest rate hike
14. Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium etc.-18%
15. Works contract supplied to central and state governments, local authorities for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc. & sub-contractor thereof-18%
16. Works contract supplied to central and state governments, union territories & local authorities involving predominantly earthwork and sub-contracts thereof-12%
Also Read| Why US inflation is going up and when will it come down
What will be cheaper?
1. IGST has been waived on certain defence equipment imported by private entities/vendors when the end-user is the Defense Forces.
2. Ropeway transportation of products and persons will be less expensive. GST rates have been reduced from 18% to 5% by the GST Council.
Also Read| Why US inflation is going up and when will it come down
3. Renting goods transport with operators when the cost of fuel is included in the consideration will attract 12% GST, down from 18% before.
4. GST rates are reduced from 12% to 5% on products such as splints and other fracture appliances; prosthetic body parts; other appliances worn, carried or implanted in the body to compensate for a defect or disability; intraocular lenses