New Delhi Pre-packaged and labeled food items and services such as costly non-intensive care hospital stays are set to attract Goods and Services Tax (GST) from Monday, while some medical supplies and transportation services as a tax. I have been determined to come down. A series of decisions of the GST Council take effect.
Accordingly, services provided by clinical establishments through rooms other than Intensive, Critical Care, Intensive Cardiac Care and Neonatal Intensive Care Units from where higher rent is charged. 5,000 a day will attract 5% tax.
In addition, pre-packaged and labeled items such as rice, flour, meat and yogurt are part of an effort to prevent alleged tax evasion by businesses that use labels without a trademark to take advantage of the tax exemptions available for certain foods. 5% GST will be applicable. ,
Specified pre-packaged and labeled items (without registered brand name) such as wheat, rice, maize, makhana, specified flour, etc. will be liable to 5% GST with effect from July 18, thereby increasing the cost to the customer, Saurabh Agarwal, Tax partner explained in EY India.
The change in rates is part of the GST Council’s decision last month to correct tax anomalies on several industries and expand the tax base while giving relief to some sectors.
As part of this, the GST rate on items such as orthopedic devices, orthopedic devices such as splints and other fracture devices and artificial body parts used by certain patients will be reduced from 12% to 5%. In addition, the transportation of goods and passengers by ropeway will be reduced from 18% to 5%, while the fare of trucks and cargo vehicles where fuel cost is included will be reduced from 18% to 12%.
The Central Board of Indirect Taxes and Customs (CBIC) in a social media post on Sunday said that the import of Diethylcarbamazine tablets is exempted from IGST, if supplied free of cost for the National Filariasis Eradication Programme.
Other items on which the higher GST rate will be applicable include printing, writing and drawing inks, knives, spoons and forks and electric pumps, which will attract 18% GST from Monday as against 12% earlier. Some agricultural and diary equipment, which till now used to attract 5% or 12% GST, will now attract 18%. Also, the rate on solar water heaters and finished leather will increase to 12% from 5% earlier.
The change in rates is expected to boost revenue collection and help reduce litigation by preventing certain refund claims that get disputed. However, instances of a rate hike may face criticism from opposition parties as it coincides with the start of the monsoon session of Parliament. A government official explained to Mint that the changes were made on the recommendation of several states that have lost revenue due to low rates in the GST regime.
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