Wed, 29 Jun 2022 12:35 PM IST
Goods and Services Tax (GST) will now be levied on pre-packed and labelled food items like meat, fish, curd, paneer, and honey. The GST will also be levied on the fee charged by the banks for issuing of cheques, according to a report by news agency PTI.
This comes after the GST Council accepted the recommendations of a group of ministers from states on withdrawing exemptions with a view to rationalise the tax.
The panel headed by Union Finance Minister Nirmala Sitharaman and attended by the representatives of all the states and union territories (UTs) accepted the recommendations by the group of ministers for reviewing the exemption from GST that packed and labelled food items currently get.
Meanwhile, pre-packed and labeled items including meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost will now be charged with 5 per cent tax.
However, a tax of 18 per cent will be attracted by the banks for issuing of cheques(loose or in book form), and maps and charts that include atlas will be levied with 12 per cent tax. On the other hand, goods that are unpacked, unlabelled and unbranded will remain free from tax.
A GST of 12 per cent will be charged on hotel rooms below Rs 1,000 per day and a correction in the inverted duty structure for items including edible oil, coal, LED lamps, printing or drawing ink, finished leather, and solar water heater, has also been suggested by the GST Council.
However, Sitharaman is expected to brief the media on Wednesday regarding the outcomes of the 47th GST Council meeting.
Meanwhile, a data on revenue growth stated that only five out of 31 states and UTs, including Arunachal Pradesh, Manipur, Mizoram, Nagaland, and Sikkim, recorded a revenue growth higher than the protected revenue rate for states under GST in the financial year 2021-22.
(With PTI inputs)