GST Council Meet Highlights

Jun 30, 2022 00:03 am

GST Council Meet Highlights | The GST Council has accepted the recommendations of a group of ministers (GoM) on correcting the so-called inverted duty structure and pruning the list of exemptions, said Finance Minister Nirmala Sitharaman. The council has given the GoM more time to decide on rate rationalization measures, Nirmala Sitharaman told reporters after the two-day GST Council meeting ended in Chandigarh on June 29. The council also considered tax on online gaming, casinos and horse racing and has given the GoM more time until July 15 to firm up its report after speaking to stakeholders.

A number of items are set to attract Goods and Service Tax (GST) after the GST Council approved changes in the tax rates on some goods and services with a view to rationalising the levy.

The decision was taken by the GST Council - the highest decision-making body on the levy of goods and services tax, headed by Union Finance Minister Nirmala Sitharman and comprising representatives of all states and UTs.

Here is a list of items and services that will attract GST

  • Pre-packed and labelled meat (except frozen), fish, curd, lassi, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost will not be exempted from GST and will now attract a 5 per cent tax.

  • However, goods that are unpacked, unlabelled and unbranded will continue to remain exempt from GST.

  • The GST Council also recommended a correction to the inverted duty structure for a host of items, including edible oil, coal, LED lamps, printing/drawing ink, finished leather and solar water heater.

  • An 18 per cent GST will be levied on fees charged by banks for the issue of cheques (loose or in book form).

  • Maps and charts, including atlases, will attract a 12 per cent levy.

  • A 12 per cent tax on hotel rooms below Rs 1,000 per day will be levied, as against a tax exemption currently.

  • With regard to e-way bill on intra-state movement of gold, gold jewellery and precious stones to check evasion, the Council recommended that states can decide on the threshold above which the electronic bill is to be made mandatory.