5% GST on packaged curd, paneer and flour

Tags: Economy/Finance

With the implementation of the GST Council's decision, customers will have to pay 5% GST on pre-packaged, labelled food items like flour, paneer and curd, as well as hospital rooms renting more than Rs 5,000 from July 18.

Important facts

• Earlier, GST was applicable only on branded packaged rice, but after the implementation of the new rates, all types of rice (branded and unbranded) and flour (branded and unbranded) would attract GST.

• The government has decided to levy 5% GST on hospital rooms with ICU not exceeding Rs 5000.

• Along with this, now 12 percent GST will be applicable for taking a room in the hotel for less than Rs 1000. Earlier both were kept out of the purview of GST.

GST will be imposed on these things for the first time

• Curd, Lassi, Buttermilk (5%)

• Cheese (5%)

• All Kinds of Jaggery (5%)

• Khandsari sugar (5%)

• Honey (5% GST)

• Rice, rye, barley, oats (5%)

• Flour (5%)

• Coconut water (12%)

• Rice Flour (5%)

GST rate levied on other goods and services

• Solar water heater (12%) 

• Printing, writing or drawing ink, knives with cutting blades, paper knives and pencil sharpeners, LED lamps - 18% 

• Some services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums - 18%

• Bio-medical waste treatment facilities - 12%

Reduction or exemption in GST

• Trucks, freight movement where fuel cost is included, will now attract 12% GST instead of 18%.

• The exemption in GST on the transportation of passengers to and from the northeastern states and Bagdogra will be limited to only economy class.

• Any person can claim GST exemption only for training or coaching in recreational activities related to art or culture or sports.

• Electric vehicles, whether or not fitted with a battery pack, will be eligible for a concessional GST rate of 5%.