Customers to pay 5% GST on pre-packed, labelled food items, hospital rooms above Rs 5,000

Customers will have to pay 5% GST on pre-packed, labelled food items like atta, paneer, and curd, besides hospital rooms with rent above Rs 5,000 from today with the GST Council's decision coming into force.

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

The Council had also removed duty inversion for goods where the taxes on inputs were higher than those on the output. Tax rates on products such as printing, writing or drawing ink; knives with cutting blades, paper knives and pencil sharpeners; LED lamps; drawing and marking out instruments will be hiked to 18 percent.

Solar water heaters will now attract 12% GST as compared to 5% earlier. Some services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will see tax going up to 18% from the current 12%. Renting of truck, goods carriage where the cost of fuel is included will now attract a lower 12% rate as against 18%.

Services rendered by regulators such as RBI, IRDA and SEBI will be taxed at 18% and so will be renting of a residential dwelling to business entities. Bio-medical waste treatment facilities shall attract 12% GST, while non-ICU hospital rooms exceeding Rs 5,000/day will be levied 5% GST, without input tax credit, to the extent of the amount charged for the room.