In a potential blow to the common person's wallets, the GST Council, in its 47th meeting on June 28, approved removing Goods & Services Tax (GST) relaxation for several packaged and unbranded food items.
Pre-packed and labelled food items like rice, meat, fish, curd, paneer and honey will now attract 5 per cent GST, a tax that will also be levied on the fee that banks charge for the issue of cheques. Earlier, unbranded food products were exempted from GST.
What Is Getting Expensive
In a report by ET Now, curd, lassi and buttermilk will get 5 per cent more expensive as these items will be purchased under the bounds of the lowest slab of the tax regime.
A 5 per cent GST was also proposed by the Council on items like unfrosted coffee beans, unprocessed green tea, wheat bran and rice bran.
Food items are not the only things that are getting expensive, as getting treated in a hospital or taking a vacation in a hotel room has also become expensive. Hospital rooms that are above ₹5,000 per day will invoke a 5 per cent GST and hotel rooms priced above ₹1,000 will invoke a 12 per cent GST.
Is There Any Relaxation
Businesses that are engaged in transportation and small e-commerce sectors have something to look forward to as the GST Council is believed to have cut down the tax on ropeways, goods carriage rentals, which includes the fuel cost, and have exempted the foreign component of the tour package from the direct tax structure.
The transport of goods and passengers by ropeways will now be taxed at a lower slab of 15 per cent from 18 per cent earlier.
With regard to the ongoing GST Council meeting, Pradeep Multani, President, PHD Chamber of Commerce and Industry, has asked the Council to maintain the status quo in the GST rates for essential items.
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