Last month when GST council met to finalize the structuring of GST rates on certain daily need items. It was decided to increase the GST rate on some essential daily items. With the decision now coming into effect today, many food items, such as curd, rice, lassi, and wheat flour are set to get costlier.

The dairy products now under GST’s ambit:

GST council meeting presided over by the Finance Minister Nirmala Sitharaman decided to bring dairy products under GST for the first time ever. The council finalized to bring Tetra-packed lassi, curd, and buttermilk under a 5% slab. Apart from this unbranded pre-packed and pre-label flour and lentils will have a 5% tax rate as well.

18% earmarked for LED lights and lamps:

Blade, scissors, pencil sharpeners, spoons, forks, cake services, and other entities have undergone a hike in GST rates imposed. The latest structure in effect from today, highlights 18% tax slabs on these items, besides imposing the same rate on LED lights and lamps up from 12%.

Costly health facilities:

If a hospital bed charges you Rs 5000 and above per day you will have to cough up an additional 5% on it under the new regime. However, ICU, ICCU, and NICU rooms have been exempted from this.

The complete list under the new GST regime:

  • Flights now flying from far-off eastern regions of the country, such as Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, and Bagdogra which was tax-free by far will charge their passengers traveling in Business class 18% more under the new structure, however, economy class travel is still tax-free.
  • For hotel rooms below Rs 1000, the new tax structure has the provision of 12%, which was nil before this.
  • The storage in the warehouse over goods such as dry fruits, spices, cotton, jute, tobacco, tea, coffee, jaggery, tendup leaves, etc will charge you an additional 12% extra. The farm output undergoing fumigation in the storage, which was tax-free until date, has been revised to the tune of 18% after the restructuring.
  • GST council has decreased the tax slab on the usage of ropeway from 18 to 5%. Apart from this the GST rates on splints and other fracture equipment, artificial elements implanted in the body after the surgery, body implants, and intraocular lens has gone down to 5% from 12 before the revision.
  • In the list where the tax has been restructured, there is mention of certain special imports for the defence forces, which will become tax-free from today. 
  • Operators providing services for carriers where the fuel rate is included in the expense got slight relief in the change from today, where the tax rate was 18% it has gone down to 12% today.
Increase in the GST collection:

The GST collection for the month of June has increased to Rs 1.45 lakh crore in comparison to last year this is a growth of over 56%. In May the number was 1.41 lakh crore.


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