A decision was taken at the 47th GST Council meeting to increase the GST rate of essential commodities like rice, milk, and curd. Accordingly, it is said that these new tax rules will come into force next Monday (July 18).
Last June, the GST Council announced that a 5 percent GST tax will be levied on packed milk, buttermilk, lassi, etc., as per the Metrology Act, with effect from July 18. Exempted essential commodities such as rice, wheat, and flour have now been brought within the GST range by levying GST at 5 percent.
Apart from this, 18 percent GST has been fixed as a tax on checkbooks. The GST on LED bulbs has been increased to 18 percent from 12 percent. And in hospitals, excluding ICUs, 5 percent GST has been levied on rooms charging up to Rs 5000 per day. It may be noted that earlier hospitals were exempted from GST.
Also, the GST Council has imposed a new GST on hotel rooms charging up to Rs.1000, bringing it within the 12 percent limit. The country’s inflation rate has risen and currently stands at 7 percent. Due to this, while the rise in prices is hurting the common people, the GST tax hike may have been brought a bit late, according to businessman Archit Gupta.