GST: Grocery, Mango Pulp, Holidays And More: Here's What Costs More From July 18

Household items from grocery to stationery, health expenses and travel are set to turn dearer next week as higher goods and services tax rates comes into effect from July 18.

Items which were earlier exempt have been brought under GST. This includes a 5% rate on pre-packed and labelled food items and grains.

A group of ministers on rate rationalisation, headed by Karnataka Chief Minister Basavaraj Bommai, was tasked to remove inverted duty structure, review and rationalise exemptions and decide if rate mergers were necessary as part of their terms of reference when it was constituted.

After the 47th GST Council meet last month, the government decided to raise rates on a number of items and services.

Here are the GST tax changes the come into effect:

Groceries

Pre-packaged dairy products such as lassi, curd, cheese, and buttermilk, and items like wheat flour, other grains, honey, papad, cereals, meat and fish (excluding frozen items), and jaggery will not enjoy exemption from the GST anymore. Earlier, only branded retail items attracted the GST. Now this has been revised to include all pre-packed, pre-labelled items at the lowest slab of 5%.

Tetra packs used as aseptic packaging options for milk, juices, and other edible liquids for retailers will be levied a higher GST of 18%.

The government also clarified that all forms of mango including pulp, but excluding sliced or dried, will attract 12% GST. Raw or fresh mangoes will continue to be exempted.

Kitchen Utensils

The removal of inverted duty where the GST on raw materials is higher than the finished goods has also been reviewed. Kitchen utensils like cutting blades, paper knives, spoons, forks, ladles, skimmers and cake-servers will now attract a 18% GST against 12% earlier.

Stationery

Stationery items like pencil sharpeners, blades, drawing and marking out instruments have also been corrected of inverted duty structure and will attract an 18% GST against 12% earlier.

Items like maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans, and printed globes, that were earlier exempted will attract a 12% GST.

Electrical appliances

The GST on electrical appliances such as LED lamps, lights and fixture, their metal printed circuits board has been raised from 12% to18%.

Tax rates on solar water heater and systems have been increased from 5% to 12%.

Healthcare

Hospital room rent (excluding ICU) that exceeds Rs 5,000 a day for one patient will be liable to 5% without input tax credit.

But healthcare supplies used by hospitals and orthopedic appliances such as splints and other fracture appliances, artificial parts of the body, appliances that are worn or carried or implanted in the body to compensate for a defect or disability and intraocular lens will attract a lower GST rate of 5% against 12% earlier.

Travel and Recreation

Air travel to and from the northeastern states and Bagdogra was exempted for all classes of flight. Now, that will be restricted to only economy class passengers.

Hotel accommodation up to Rs 1,000 a day will be taxed at 12%. Cable transport through ropeways has seen a reduction from 18% to 5%, without the option for claiming input tax credit.

Training and coaching classes for recreational activities pertaining to arts and culture or sports when offered by an individual, however, will remain tax-exempt.

The GoM on rate rationalisation has been given three more months to deliver its final report since the 47th meeting in June. The group is expected to offer its recommendations on rate mergers and rate slab revisions.