New Delhi: The 47th meeting of the Goods and Services Tax (GST) Council has approved imposition of GST on new items and increase in tax on certain items to boost the revenue of the government. For example, the council has decided to levy 12% GST on hotel rooms priced below Rs 1000. Till now, 12% GST was levied on the tariff above the tariff limit of hotels. The move may negatively impact the tourism sector which is currently recovering from the Covid-19 crisis.
Meanwhile, the GST Council has also agreed to levy 18 per cent cess on checks, whether those checks are open or in book form. GST will be levied on the fee charged by the banks for issuance of cheques. (Also Read: Employee Disappears After Accidentally Getting Pay 286 Times! Chile-Based Company Takes Legal Action)
Apart from this, pre-packaged and labeled food items like meat, fish, curd and paneer will now attract GST. Packing of unpacked food items like rice and wheat will now attract 5% GST. Other similar items that have now come under the purview of GST include meat (except frozen), honey, dried legumes, dried makhana, wheat and other cereals, wheat flour, jaggery, murmura (muri), all goods and organic Contains fertilizers. and coir pith compost. (Also read: Rupee hits fresh low, falls 18 paise to close at 79.03 against US dollar)
Officials said the move comes after the GST Council – the highest decision-making body on the levy of goods and services tax – accepted most of the recommendations of a group of ministers from states on withdrawal of exemptions with a view to rationalize the levy. .
On the first day of the two-day meeting, the panel headed by Union Finance Minister Nirmala Sitharaman and representatives of all states and union territories accepted the GoM’s recommendation to review the current GST exemptions for packaged and labeled food items. .
Also, the GST Council has decided that the goods which are unpacked, unlabeled and unbranded will continue to be exempted from GST.