New GST rates come into effect today; Check what's about to get costlier and cheaper

Customers will pay more as the Goods and Services Tax (GST) Council's new reforms, led by Union Minister Nirmala Sitharaman, come into effect on Monday for household goods, banking services, hospitals and hotels. A number of basic goods and services, such as pre-packaged, labelled food items and hospital rooms, may see price increases starting today (July 18).

The decision was made last month during the 47th GST council meeting, which was presided over by Finance Minister Nirmala Sitharaman and attended by her state counterparts. At the meeting, they reduced the list of exempt goods and services and increased taxes on a variety of other goods and services. Additionally, the Council eliminated duty inversion for commodities whose input taxes were higher than output taxes. Here are the lists of goods and services that will get expensive and cheaper.

List of goods and services that will get expensive from today:

• On pre-packaged, labelled foods such as atta, paneer, and curd, customers must pay 5 per cent GST.
• Hospital rooms rented for more than Rs 5,000 would be subject to a 5 per cent GST.
• Atlases and maps and charts will be subject to a 12 per cent Goods and Services Tax.
• Hotel rooms with a tariff of up to Rs 7,500/day will attract 12 per cent GST. ( Note: Earlier Hotels with tariffs up to Rs 1,000/day attracted no GST, but now they are also included in the ambit of it)
• Tetra packs and bank costs for issuing checks will both be subject to a total GST of 18 per cent (loose or in book form).
• The present tax rate of 12 per cent will be increased to 18 per cent for items including printing, writing, or drawing ink; knives with cutting blades, paper knives, and pencil sharpeners; LED bulbs; and drawing and marking out tools.
• Solar water heaters will now attract 12 per cent GST as compared to 5 per cent earlier.
• Services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will see tax going up to 18 per cent from the current 12 per cent.

List of goods and services that will get cheaper from today:

• Taxes on ostomy appliances and the use of ropeways for the transportation of goods and people will be reduced from 12 to 5 per cent.
• Renting a truck or goods carriage that includes fuel costs will now be charged at a lower rate of 12 per cent as opposed to 18 per cent.
• From July 18, electric vehicles, whether or not equipped with a battery pack, would be eligible for the reduced GST rate of 5 per cent.
• Only economy class flights to and from Bagdogra and the northeastern states will be exempt from the GST.