Daily essentials such as packaged food items, labelled food packets, jaggery, curd, buttermilk, rice, wheat, and more became more expensive after the 47th GST council meeting recently. The meeting resulted in a price hike of many daily necessary products and now consumers have to pay more to purchase them from the market. The implementation of this GST rate hike comes into action on 18 July 2022 (Monday). The kitchen budget is increasing as items are getting expensive after this GST rate hike.
End-Customers Will Have To Pay More For Packaged Food Items In India
The GST Council conducted the 47th GST meeting the last month, June. This meeting was chaired by Union Finance minister Nirmala Sitharaman and her state counterparts attended the meeting too. And post-meeting they also shared in a press release that many packaged food items and labelled food packets will attract a 5% GST from 18 July onwards. The customers will now have to pay more to buy these basic necessities. Also, the Central Board of Indirect Taxes & Customs apprised this conclusion on last Thursday.
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Which Services Will Attract The GST Rate Hike?
- 5% GST hike on flour, wheat, rice, rice flour, rye, curd, buttermilk, lassi, natural honey, flattened rice, puffed rice, paneer, jaggery, khandsari sugar, parched rice, oats, and barley.
- For booking hotel rooms having a tariff under ₹1,000 (per day), you need to now pay 12% GST.
- For Hospital rent above ₹5000 (per day), you need to pay 5% GST.
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Pay more for tetra packs and the fees charged by banks for issuing cheques (both loose or in book form). This falls under the 18% GST slab.
- As per the GST council meeting, there will be a hike of 12%-18% on electrical items such as LED Lights, fixtures, and LED lamps.
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This hike is surely a concern for the end customers as the budget increased to an extent. The market is inflated for some time now and everyone is having a hard time because of these price changes and now this hike is increasing it. In fact, retailers, sellers, and shopkeepers will also be affected. They will have difficulties in doing business with this hike rate in prices, and that too on the essential products.
First Published: July 18, 2022 12:35 PM