With the GST Council decision taking effect from Monday, customers will have to pay 5% GST on pre-packaged, labelled food items, in addition to wards with rents above Rs 5,000.

Additionally, hotel rooms, maps and charts (including atlases) with duties up to Rs 1,000/day will be subject to 12% Goods and Services Tax (GST), while tetra packaging and fees will be subject to 18% GST by bank cheque (at prose or account books) fees.

Last month, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and her state counterparts, cut the list of exemptions and levied taxes on various goods and services.

The Council also removed tariff inversion on goods with input tax higher than output tax, according to the Group of Ministers (GoM) interim report on tax rate rationalisation.

Tax rates on products such as printing, writing or drawing inks; knives, paper cutters and pencil sharpeners with cutting blades; LED lights; drawing and marking tools will increase to 18% from Monday’s 12% to correct inversion anomalies.

Additionally, solar water heaters will now be subject to 12% GST, up from 5% previously. Taxes on services such as work contracts for roads, bridges, railways, subways, sewage treatment plants and crematoriums will also increase to 18% from the current 12%.

In addition, from July 18, the ostomy appliance tax and the cableway freight and passenger transportation tax will be reduced from 12% to 5%.

Leasing of trucks and vans, including fuel costs, will now receive a lower rate of 12%, compared to 18%.
GST waiver for air-freight passengers to and from the Northeast states and Bagdogra will be limited to economy class.

Services provided by regulators such as RBI, IRDA and SEBI will be taxed at 18%, hence the rental of residential properties to commercial entities.

Biomedical waste treatment facilities will pay 12% GST, while non-intensive care units above Rs 5,000 per day will pay 5% GST excluding input tax credits up to the room’s charge.

In addition, individuals can only apply for GST exemption if they receive training or instruction in recreational activities related to the arts, culture or sport.

Additionally, from July 18, electric vehicles with or without battery packs will be eligible for a 5% GST rate.
According to Rajat Mohan, senior partner at AMRG & Associates, healthcare services provided by clinical institutions has enjoyed tax-neutral status under Indian tax laws for decades.

The government has now informed that all such clinical establishments, including hospitals, nursing homes and nursing homes, will be liable to pay tax on room rents exceeding Rs 5,000 per day.

“A significant problem with the amendment is that since the treatment provided by the medical establishment is a comprehensive supply, the different elements of the above transaction cannot be artificially dissected to impose new tax liabilities. The basic notification appears to be ultra vires. Section 8 mandates that A single tax is levied on all compound supply transactions,” Mohan added.