The new Goods and Service Tax (GST) rates has come into effect from Monday after the 47th meeting of the GST Council was held last month, which was chaired by union finance minister Nirmala Sitharaman. New taxes have come into effect for a host of goods and services. While the GST on some products is being increased, some are set to cost less. Check what has become expensive and cheaper below:
What has become expensive?
1. Five percent GST will be applicable on pre-packed, labeled food items including atta, paneer, and curd, as well on hospital rooms with rent above ₹5,000. Meanwhile, an 18 percent GST will be levied on tetra packs.
2. A 12 percent GST will be imposed on maps and charts - including atlases.
3. 18 percent GST will be levied on fees charged by banks for the issue of cheques.
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4. GST rates on printing, writing, drawing ink, knives with cutting blades, paper knives, pencil sharpeners, LED lamps, drawing, and marking out instruments will be hiked to 18 percent from the previous 12 percent.
5. The GST on solar water heaters will be increased to 12 percent as compared to five percent earlier.
{{/usCountry}}5. The GST on solar water heaters will be increased to 12 percent as compared to five percent earlier.
{{/usCountry}}6. Services including work contracts for roads, bridges, railways, metro, effluent treatment plants, and crematoriums will see an increase in the GST to 18 percent from the current 12 percent.
Also read: GST on non-branded edibles set to hit kitchen budgets
What has become cheaper?
1. Taxes on ostomy appliances and on the transport of goods and passengers by ropeways will be cut up to five percent from the previous 12 percent.
2. GST will be exempted for the transport of passengers by air to and from northeastern states and Bagdogra in the economy class.
3. The GST on renting of trucks, and goods carriages (where the cost of fuel is included) will be cut to 12 percent from 18 percent.
4. Electric vehicles will be eligible for the concessional GST rate of five percent.