Flour, curd and pre-packed food items are set to get costlier from Monday as the customers will have to pay 5 per cent GST on them. Exemptions have been withdrawn for pre-packed and pre-labelled food grains.
Hotel accommodation up to Rs 1,000 per day will now be taxed at 12 per cent. Tax rates have been increased from 12 per cent to 18 per cent on products such as printing, writing or drawing ink, knives with cutting blades, spoons, forks, paper knives, pencil sharpeners, and LED lamps.
The 5 per cent GST will also be charged on hospital room rent above Rs 5,000 per day but ICU has been exempted.
Reacting to the development, the Congress said that these rate revisions are unwelcome at a time when inflation is putting pressure on the pockets of the common person.
“The CPI inflation in May 2022 stood at 7.04 per cent, and was as high as 7.79 per cent in April 2022. These are way higher than the maximum limit of 6 per cent set by the RBI. All the products for which GST rates have been revised upwards are items that are consumed daily by the lower and middle classes,” said Congress Spokesperson Gaurav Vallabh.
The GST Council, at a two-day meeting in June had accepted recommendations for rate rationalisation made by sub-groups, resulting in tax changes to be effective from July 18.
The council had decided to refer the report of the GoMA on casinos, online gaming and horse racing back to the panel of ministers for further consideration.
The report is expected to be ready and would be taken up by the council in its next meeting in August.