New GST Rates 2022 – Why Should You Care?

Varun Gandhi, a member of the BJP, responded to the increase in GST on various commodities and services by tweeting in Hindi, "Starting today, GST is payable on packaged items including milk, curd, butter, rice, pulses, and bread. 

This choice, made amid record-high unemployment, would further ease the burden on middle-class families, particularly the struggling young people who rent housing. But unfortunately, we are "hurting" because the time to provide "relief" has passed. 

Thomas Isaac, a CPI (M) Central Committee member, tweeted his resistance to the GST increase: "The imposition of 5% GST on commodities of everyday use like grains and curd that were previously exempted is regressive. Grain prices for retail sales will increase due to the tax on packaged grains weighing less than 75 kg. Reduce taxes on needs while raising taxes on luxuries.

According to the IMA, the input tax credit is a must to prevent the growth in healthcare expenses. In addition, implementing GST is moving healthcare away from a service-centric business model.

For simple understanding of new GST rates article descripted in tabular format.

• Food products including cereal, pulses, and flour sold in single containers weighing 25 kg would be deemed "prepackaged and labelled" and subject to a 5% GST.
• Other goods like curd, lassi and puffed rice would also be subject to GST, which is charged at a rate of 5% when prepackaged and labelled.
• Printing, writing, or drawing ink, knives with cutting blades, paper knives, pencil sharpeners and blades, spoons, forks, ladles, skimmers, and cake servers are other products that will cost more. So instead of attracting 12%, these things would now draw 18%.
• Solar water heaters and LED lighting will be subject to an 18% tax.
• Instead of 12% GST, Tetra Pak (or aseptic packaging paper) used to package liquid drinks or dairy goods would now be subject to 18% GST.
• Cut and polished diamonds will henceforth be taxed at 1.5% rather than the previous 0.25%.
• Up to Rs 1,000 per day of hotel lodging will now be subject to a 12% tax.
• Non-ICU hospital rooms with room rent above Rs 5,000 per day would be subject to a 5% GST.
• The Goods and Services Tax (GST) rate will be 18% for bank chequebooks and loose leaf checks and 12% for globes, atlases, and maps.
• The rate on "Pawan chakki" or air-based atta chakki, wet grinders, machinery used in the milling business, and machinery used to work with grains, pulses, and other items rises from 5% to 18%.
• Rates for milking machines and dairy equipment will increase from 12% to 18%. Rates for machines that clean, sort, or grade eggs, fruit, or other agricultural goods and their parts will also increase.
• Only services provided by a person are free from tax for coaching or training in leisure activities related to the arts, culture, or sports.
• If a business or service provider rents a home and has annual revenue from sales of more than Rs. 20 lakh or more, they are subject to an 18% tax. They must, Under the new GST on rent of residential property every GST registered person has to pay the GST on a particular property which is rented by them.   

The following services are no longer exempt: transportation of railroad equipment and materials by rail or ship, storage of goods subject to tax (such as nuts, spices, copra, jaggery, cotton, etc.), fumigation of agricultural products in warehouses, and services provided by the RBI, IRDA, and SEB.

• Taxes on ostomy appliances and ropeways for transporting goods and people will be reduced from 12% to 5%.
•  Renting a truck or goods carriage that includes fuel costs will now be charged at a reduced rate of 12% instead of 18%.
• Only economy class flights to and from Bagdogra and the northeastern states will be free from the sales tax (GST).
• Whether or not equipped with a battery pack, electric cars will be eligible for the reduced GST rate of 5%. 

Note: 

"A sharp increase of 12% in biological waste is unjustified and would increase the expense of operating hospitals and clinics," it continued. Moreover, it will also result in higher costs for the patients. Adding further fees to the patients' bills is unacceptable in these trying circumstances.

Confederation of All India Traders (CAIT), the trade association, has announced that it will begin a statewide agitation on July 26 to call for the GST legislation to be simplified. More than 50,000 trade organisations from across the nation will join the rage, starting in Bhopal.

The demonstrations will also include participation from national and state-level organisations for transportation, farmers, independent business owners, women business owners, small and medium manufacturers, and consumers.

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