GST rates hiked for LED lights, solar water heaters, tetra packs
Chandigarh, June 30: After the recommendations that were taken up in the two-day 47th GST Council meeting in Chandigarh on Wednesday, the Goods and Services Tax (GST) has been hiked for several items including LED lamps, solar water heaters and various job works, said the officials.
The GST on printing/writing or drawing ink, LED lamps, lights and fixtures and their metal printed circuit board was raised to 18 percent from 12 percent in the Wednesday meeting. Meanwhile, the GST rate on solar water heaters and systems has increased to 12 percent from 5 percent.
GST rate on job work in relation to manufacture of leather goods and footwear is also hiked to 12 percent from 5 percent, while the rate on works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium being raised to 18 percent from 12 percent.
Furthermore, the Council increased the rate on tetra pack to 18% from 12%, and the rate on cut and polished diamonds to 1.5% from 0.25%.
The Council also recommended that certain commodities be taxed at a lower rate.
The GST rate for ostomy and some orthopaedic appliances has been decreased from 12% to 5%, and the rate on goods and passengers handled by ropeways has been reduced from 18% to 5%.
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The Council cut the rate for renting a truck/goods carriage that includes the cost of fuel to 12% from 18%.
The GST Council's recommended rate changes will take effect on July 18, 2022.
Vivek Johri, Chairman of the Central Board of Indirect Taxes (CBIC), stated that the GST Council has completed rate rationalisation in order to eliminate the inverted duty structure.
"Those items where rate have been increased would not have much impact on consumers as most of the items are used in business to business activities," Vivek Johri said.
"Items like Printing, writing or drawing ink, knives with cutting blades, Paper knives, Pencil sharpeners and blades, therefore, Spoons, forks, ladles, skimmers, cake-servers will not have much impact on consumers, said Johri, adding that there is some relief to consumers too," he further stated.
The Group of Ministers on Casino, Race Course, and Online Gaming, chaired by Meghalaya Chief Minister Conrad Sangma, will re-examine the issues in its terms of reference based on additional input from states and submit its report by July 15 to be finalised in the GST council meeting, which is scheduled to be held in Madurai in the first week of August.
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-PTC News
