Nirmala Sitharaman and her state counterparts had cut exemption lists and imposed taxes on several goods and services
Nirmala Sitharaman and her state counterparts had cut exemption lists and imposed taxes on several goods and services
Customers have to pay 5% GST on pre-packaged, labeled ones Foods like flour, cheese and yogurtApart from hospital rooms with rent above Rs 5,000 from Monday with the implementation of the decision of the GST Council.
In addition, hotel rooms with tariffs up to ₹1,000/day, maps and charts, including atlas, will attract 12% Goods and Services Tax (GST), while Tetra Pack will attract 18% GST and will be charged by banks. will be taken. To issue a check (in loose or book form).
Last month, the GST Council, headed by Union Finance Minister Nirmala Sitharaman and headed by her state counterparts, cut the exemption list and tax levied on many goods and services,
Based on an interim report of the Group of Ministers (GoM) on rate rationalization, the council had also removed duty reversal for goods where taxes on inputs were higher than taxes on output.
tax rates on products such as printing, writing or drawing ink; Knives with cutting blades, paper knives and pencil sharpeners; led lamp; To correct the reverse duty discrepancy, the drawing and marking instruments will be increased from 12% to 18% on Monday.
Also, solar water heater will now attract 12% GST as compared to 5% earlier.
Taxes on work contracts for certain services such as roads, bridges, railways, metro, waste treatment plants and crematoriums will also increase to 18% from the current 12%.
In addition, there will be a reduction of 12% to 5% on ostomy devices and transport of goods and passengers by ropeway from July 18.
Trucks, freight fare where fuel cost is included, will now attract a lower rate of 12% as against 18%.
GST exemption The movement of passengers to and from the North-Eastern states and Bagdogra will be restricted to economy class only.
Services provided by regulators like RBI, IRDA and SEBI will be taxed at 18% and hence will have to be rented out to commercial entities.
Bio-medical waste treatment facilities will attract 12% GST, while non-ICU hospital rooms will attract 5% GST without input tax credit, to the extent of the amount charged for rooms in excess of ₹5,000/day.
Further, individuals will be able to claim GST exemption only for training or coaching in recreational activities related to art or culture or sports.
Also, electric vehicles, whether equipped with battery packs or not, will be eligible for a concessional GST rate of 5% with effect from July 18.
Rajat Mohan, Senior Partner, AMRG & Associates, said that healthcare services by a clinical establishment have enjoyed a tax-neutral status under Indian tax laws for decades.
The government has now notified that all such clinical establishments including hospitals, nursing homes and sanatoriums will be liable to pay tax on gross room rent which exceeds ₹5,000 per day.
“The striking question that comes to mind with respect to the amendment is that since the treatment provided by medical establishments is a composite supply, the various elements of the referred transaction cannot be artificially divided to apply the new tax liabilities. The underlying notification appears to be ultra vires the provision of Section 8 which mandates a single tax on all aggregate supply transactions,” Mohan said.