47th GST Council meeting decisions to have big impact on household budgets
The 47th GST Council meeting held on June 28, chaired by Finance Minister Nirmala Sitharaman, made some crucial decisions on imposing or increasing GST on a variety of items that would majorly affect household budgets.
Here are the decisions on GST that will impact households:
- All packaged non-branded food, including rice, atta, snacks: 5% (branded cereals and other food already attract 5% GST). The Council also agreed to replace the term ‘branded’ with ‘pre-packaged and labelled’ for retail sale to avoid disputes.
- Cheque books: 18%
- Hospital cabin beds (excluding ICU) costing above Rs 5,000 per patient per day: 5%
- Hotel room rent less than Rs 1,000 per night (i.e., budget hotels): 12%
- Tailoring: 12% (from 5%)
- Cutlery (spoons, forks, knives, etc.): 18% (from 12%). Therefore, eating out will become costlier.
- Tetra Pak, dairy machinery: 18% (from 12%). Therefore, milk cartons, packaged juices, etc. will become costlier..
- LED lamps, inks, power-driven pumps: 18% (from 12%)
- Leather (clothing, textiles, accessories): 12% (from 5%)
- Solar water heater: 12% (from 5%)
- Milling machinery for cereals: 18% (from 5%). This will naturally affect the prices of cereals.
Other decisions
- GST on E-waste: 18% (from 5%)
Withdrawal of GST
- Withdrawal of GST exemption on services by the postal department, except postcards and envelopes less than 10 grams
- Withdrawal of GST exemption on storage and warehousing of taxable goods like sugar, natural fibre Withdrawal of GST exemption on services like fumigation for warehouses
- Withdrawal of exemption on business class air travel for north-eastern states
- Withdrawal of exemption on road and rail transport, when such services are input for business
- Withdrawal of exemption on services by way of slaughtering of animals
- Disallowing of input tax credit refund in edible oils and coal on account of inverted duty structure
