From July 18, there will be a higher GST council, raising the price of goods and services such as pre-packaged unbranded foods, specific pickles, classics, checks, and cut and polished diamonds. Cutlery, LED lights, pencil sharpeners, ink for printing, drawing, and writing, hospital rooms.
In order to increase tax revenues and close loopholes before the tax reform measure’s fifth anniversary, a number of items that are currently exempt from the tax, such as services provided by financial regulators, hotel rooms priced under Rs 1,000, and non-ICU hospital rooms costing more than Rs 5,000 per day per patient, will also be included in the tax net.
In addition, there is some relief for various services, including intraocular lenses and implants as well as the transportation of products by hired trucks and ropeways.
The GST Council, chaired by Union FM Nirmala Sitharaman with state FMs as members, decided to end exemptions and correct the inverted duty structure for several items at its two-day meeting that ended on Wednesday.
It also decided to extend the tenure of a panel of state FMs on rate rationalization by an additional three months.
The Council decided to increase tariffs on a variety of goods and services (such as LED lamps, solar water heaters, leather, and works contract services for specified works) in order to correct the inverted duty structure and prevent the accumulation of input tax credits that would otherwise prevent working capital from flowing. A number of exemptions on goods and services have also been removed, including taxes on hotel stays up to Rs 1,000 and hospital stays (except ICU) costing more than Rs 5,000 a day. Given the current level of high inflation in the nation, an increase in GST rates might not be appropriate.
The Council has postponed consideration of the recommendation for a 28 percent in charge of gaming in casinos, at horse tracks, and online.
