5% GST on pre-packed, labelled food items, hospital rooms above ₹5000 from tomorrow

Customers from tomorrow onwards will have to pay 5% GST on pre-packed, labelled food items like atta, Ghee, Paneer and curd, besides hospital rooms with rent of more than ₹5,000 a day from Monday with the GST Council’s decision.

In addition to this, hotel rooms with a tariff of up to ₹1,000/day, maps and charts, including atlases, will attract 12% Tax GST, while 18% GST will be charged on tetra packs and fees charged by banks for the issue of a cheque.

Tax rates on products like printing, writing or drawing ink; knives with cutting blades, paper knives and pencil sharpeners; LED lamps; drawing and marking out instruments will increase to 18% from 12%, to correct the inverted duty anomaly. Also, the solar water heater will now collect 12% GST. Services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will see a tax increment to 18%.

On the other hand, taxes will be reduced on ostomy appliances and transportation of goods and passengers by 5% from July 18.

Renting of trucks, and goods carriages where the cost of fuel is concerned will now collect 12% GST.  Biowaste treatment facilities shall attract 12% GST, while non-ICU hospital rooms exceeding ₹5,000/day will be attached 5% GST, without an input tax credit.

Instead, individuals will only be able to claim GST exemption for training in recreational activities related to arts or culture or sports.

EVs, whether or not fitted with a battery pack, would be eligible for the concessional GST rate of 5% from July 18.

“The striking question which comes to mind regarding the amendment is that since the treatment provided by the medical establishments is a composite supply, different elements of the referred transaction cannot be vivisected artificially for imposing new tax liabilities. Underlying notification seems to be ultra vires the provision of section 8 that mandates a single tax on all composite supply transactions,” Mohan added.