In the 47th meeting of the Goods and Services Tax (GST) Council, the decision to revise existing GST rates was finalised. The meeting was held from June 28 to June 29, 2022. It was undertaken under the chairmanship of the Union Minister of finance and Corporate Affairs, Nirmala Sitharaman.
Recommendations were made regarding revision of the rates for goods and services, withdrawal of exemptions on certain goods and services, clarification on GST rates for certain goods and services and measures for trade facilitation and streamlining GST compliance. The revised rates come into effect from July 18, 2022.
Let’s know more about the Goods and Services Tax and its revised rate:
What is the Goods and Services Tax?
The Goods and Services Tax, popularly known as GST, is an indirect tax levied on goods and services in India. It came into effect on July 1, 2017, after the Goods and Services Tax Act was passed in the parliament.
The implementation of GST has replaced several indirect tax taxes like excise duty, Value-Added Tax (VAT), and services tax, among others. It is levied similarly all across the nation. Therefore, it is also referred to as ‘One Nation, One Tax’.
New Goods and Services Tax rates
| Goods | ||
| Items | Existing GST Rate | New GST Rate |
| Ink used for printing, writing or drawing | 12% | 18% |
|
Pencil Sharpeners and blades, spoons, forks, knives, ladles, skimmers, cake servers, etc.
|
12% | 18% |
| Centrifugal pumps, Submersible pumps, tube-well turbine pumps, Bicycle pumps | 12% | 18% |
| Cleaning, sorting or grading machines for seed, grain, and pulses;
Machinery used for working of cereals or in the milling industry etc. |
5% | 18% |
| Cleaning, sorting or grading machines for eggs, fruits or other agricultural produce and its parts, Milking machines and dairy machinery | 12% | 18% |
| LED lamps, lights and fixtures their metal printed circuits board | 12% | 18% |
| Marking out and Drawing Instruments | 12% | 18% |
| Solar water system and heater | 5% | 12% |
| Chamois leather, Prepared/finished leather, Composition leathers | 5% | 12% |
| Orthopaedic appliances − artificial parts of the body, splints and other fracture appliances, or other appliances that
are carried, worn, or implanted in the body to compensate for a defect or disability, intraocular lens |
12% | 5% |
| Ostomy pouching systems | 12% | 5% |
| Aseptic packaging paper used for making Tetra packs | 12% | 18% |
| Tar from producer Gas plants, coal, coal gasification plants, and Coke Oven Plants | ||
| IGST levied on the import of Diethylcarbamazine (DEC) tablets supplied free of cost for National Filariasis Elimination Programme | 5% | NIL |
| Diamonds (Cut and Polished) | 0.25% | 1.5% |
| IGST levied on specified imported defense items by private entities or vendors, to be used by the defense forces of India | Applicable rate | NIL |
| Cheques (in any form- loose or book) | NIL | 18% |
| Coal bed Methane/Petroleum | 5% | 12% |
| Electronic waste | 5% | 18% |
| Maps, hydrographic charts or similar charts of all kinds, including wall maps, topographical plans, atlases, and globes | NIL | 12 % |
| Services | ||
| Items | Existing GST Rate | New GST Rate |
| Services of foreman to chit fund | 12% | 18% |
| Job related to the processing of leather, hides, and skins | 5% | 12% |
| Job related to manufacturing leather goods and footwear | 5% | 12% |
| Job related to manufacture of clay bricks | 5% | 12% |
| Contract-based work for roads, railways, metro, bridges, effluent treatment plant etc. | 12% | 18% |
| Contract-based works service supplied to Central and State governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals etc. and its sub-contracting | 12% | 18% |
| Contract-based works service supplied to Central and State governments and local authorities involving predominantly earthwork and its sub-contracting | 5% | 12% |
| Transporting goods and passengers by ropeways | 18% | 5% (With ITC of services) |
| Truck/ goods carriage rent including cost of fuel | 18% | 12% |
What will become costlier after New GST Rates?
- Knives, Spoons, Forks, cake servers, etc.
- Power driven Pumps
- Prepackaged and labelled pulses, rice, wheat and flour
- LED lamps, lights and fixtures
- Solar Water Heater
- Cut and Polished diamonds
- Hotel accommodation to cost ₹1,000 per day
- Hospital room (except ICU) more than ₹5,000 per day
What will become cheaper after New GST Rates?
- Ostomy appliances
- Renting of trucks, goods carriage with included cost of fuel
- Electric Vehicles
- air travel between north-eastern states and Bagdogra is restricted to economy class only
