New Delhi: The new Goods and Services Tax (GST) rates on a number of items come into effect from today. Certain items will attract more GST while the rates on certain things are coming down from today. The exemption from GST on a number of items have been withdrawn. The decision to change the GST rate had been taken during the 47th GST Council Meeting held in Chandigarh last month.
Eighteen percent GST will be charged by banks as a fee for issuing cheques. Hotel accommodation priced up to one thousand rupees per day will be taxed at 12 percent. The solar water heater will now attract 12 percent GST as compared to five percent earlier. GST on e-waste has increased to 18 percent from the earlier rate of five percent.
The tax will be cut on the transport of goods and passengers by ropeways to five percent from 12 percent. Electric vehicles are eligible for the concessional GST rate of five percent. GST exemption on the transport of passengers by air to and from northeastern states and Bagdogra will be restricted to economy class only.
Finance Ministry said, single packages of unbranded pre-packed and labelled food items like cereals, pulses, and flour weighing in excess of 25 kilograms will not attract GST. It said, if several packages intended for retail sale to ultimate consumers, like 10 packages of 10 kilograms each, are sold in a larger pack, then GST would apply to such supply. However, a package of rice containing 50 kilograms in one individual package would not be considered a pre-packaged and labelled commodity for the purposes of GST levy.
