Kerala Kaumudi Online
Friday, 19 August 2022 2.21 AM IST

GST reduced to 12 percent; freight charge to come down


NEW DELHI: The GST Council, which met in Chandigarh, has decided to reduce the 18% GST on freight to 12%. The decision was taken as freight rates were increasing with the rise in fuel prices. The tax relief will be on vehicle rent where the cost of fuel is included.

No decision has been taken on whether the compensation cess to offset the revenue loss to the states due to GST will continue after June 30. Seventeen states, including Kerala, demanded that the cess be continued as the loss of revenue continues. Union Finance Minister Nirmala Sitharaman said the decision would be taken at the next council meeting.

The GST Council deferred a decision on levying a 28 percent tax on casinos, online gaming, horse racing and lottery after Goa expressed concerns regarding it. The GST Council which will meet in Madurai in early August, will discuss the issue.

GST on ropeway freight in hilly areas has been reduced from 18 percent to 5 per cent. The changes will take effect after July 18.

Newly introduced GST

  • Pre-packed meat, curd, paneer, buttermilk, lassi, honey 5%
  • 18% GST will be levied on the fee charged by banks for the issue of cheque books
  • Map, Chart, Atlas 12%
  • 12% GST on hotel room below Rs 1000/day
  • hospital room rent (excluding ICU) above Rs 5,000 per day shall be taxed to the extent of amount charged for the room at 5%
  • Tax exemption for arts and cultural training is for individuals only
  • 12% for mango products
  • 5% for advertisement in book form souvenirs

GST from 5% to 18%

  • Electronic waste

GST from 12% to 18%

  • Cutting blade, pencil sharpener, blade, spoon, fork
  • Centrifugal pump, submersible pump, bicycle pump
  • LED lamp
  • Drawing and marking tools
  • Works contract for roads, bridges, railways,
  • Works contract supplied to central and state governments, educational institutions, hospitals etc

5% to 12%

  • Solar water heater
  • Leather shoes, manufacture of leather products, clay bricks

0.25% to 1.5%

  • Cut and polished diamond

GST is applicable

  • Railway freight
  • Spices, dried coconut kernels, jaggery, cotton, nuts
  • Houses for rent for business
  • Stem cell collection
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