GST on Food Items -India GST Slabs for Food Items [New Rule]

GST on Food Items India: Now pay GST on all pre-packaged, labeled food items and also for higher-than-Rs.5,000 hospital rooms.

Beginning on Monday, customers would be required to pay 5% GST on pre-packaged, labelled foods including Atta, Paneer, and curd as well as hospital rooms with rent exceeding Rs 5,000.

Additionally, a 12 percent Goods and Services Tax (GST) would be applied to hotel rooms costing up to Rs 1,000 per day, maps, charts, and atlases, while an 18 percent GST will be applied to tetra packs and fees made by banks for the issuance of checks (loose or in book form).

The GST Council, presided by by Nirmala Sitharaman, the Union finance minister, and composed of her state equivalents, had reduced the exemption list and levied tax on a variety of products and services last month.

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Based on an interim rate rationalization report from the Group of Ministers (GoM), the Council also eliminated duty inversion for commodities where input taxes were greater than output taxes.

To remedy the inverted duty anomaly, tax rates on items including printing, writing, or drawing ink, knives with cutting blades, paper knives, and pencil sharpeners, LED lights, and drawing and marking out tools would be raised to 18% on Monday from the present rate of 12%.

Additionally, the GST on solar water heaters has increased from 5% to 12%.

The present tax rate of 12 percent will increase to 18 percent for several services, including as work contracts for roads, bridges, trains, metro, effluent treatment facilities, and crematoriums.

GST on food items
GST on food items

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In addition, from July 18 onward, taxes on ostomy appliances and the transportation of goods and people by ropeways will be reduced from 12 to 5 percent.

Renting a truck or goods carriage that includes fuel costs will now be charged at a reduced rate of 12% as opposed to 18%.

Only economy class flights to and from Bagdogra and the northeastern states will be free from the sales tax (GST).

Renting a residential property to businesses would also be subject to an 18% tax on services provided by authorities like the RBI, IRDA, and SEBI.

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In contrast, non-ICU hospital rooms over Rs 5,000/day would be assessed 5% GST, without an input tax credit, up to the amount invoiced for the room. Bio-medical waste treatment facilities will be subject to a 12 percent GST.

Additionally, persons can only use the GST exemption for coaching or training in leisurely activities related to the arts, culture, or sports.

Additionally, starting on July 18, electric cars, whether or not equipped with a battery pack, will be eligible for the discounted GST rate of 5%.

According to Rajat Mohan, senior partner at AMRG & Associates, clinical establishments have long been exempt from taxes while providing healthcare services.

As of right now, the government has announced that all such clinical institutions, such as hospitals, nursing homes, and sanatoriums, would be required to pay tax on gross room rents that exceed Rs 5,000 per day.

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“The startling question that arises in relation to the amendment is that since the medical facilities’ treatment is a composite supply, separate components of the referenced transaction cannot be intentionally vivisected for the purpose of imposing additional tax obligations. The portion of section 8 that requires a single tax on all composite supply transactions appears to be supra vires and is the basis for the notification.”


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