GST New Rate 2022
Sameep Mohite

Updated on December 29th, 2022

We all know that new GST rates 2022 were finalised for goods and services on July 18, 2022. Changes to a note might help you to survive this new GST tax slab

The new goods and services tax (GST) rates are already in force. Following the latest changes, buyers would be required to pay GST on prepackaged and labelled food items and hospital rooms costing more than Rs 5,000. Packaged foods such as curd, lassi, fish, meat, paneer, and buttermilk are expected to become more expensive.

The 47th GST council meeting took place on June 28th and 29th, 2022. The following new GST rates decisions were made, including the pruning of the exemption list and the correction of the inverted tax structure.

In addition, prices for issuing bank cheques, hotel rooms under Rs 1,000 per day, and non-ICU hospital beds over Rs 5,000 per day, have increased.

Also, prices of solar water heaters, LED lights, lamps, knives, pumps, drawing and marking tools, and construction contracts for roads and bridges have increased.

New GST Rates : This is how the nation reacted

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.

Product or Service Description

Old Rate

New Rate

What's costlier

Cut and Polished diamonds



Tetra Pack (Aseptic Packaging Paper)



Tar (From coal, gasification plants, or producer gas plants and coke oven plants)



What's cheaper

Free import of Diethylcarbamazine (DEC) tablets for the National Filariasis Elimination Programme (IGST)



Importation of specific defence items by private companies or suppliers for end-user consumption of defence (IGST)

Applicable rates


Ostomy Appliances



Orthopaedic appliances such as intraocular lenses, prosthetic body parts, splints and other fracture appliances, other worn or transported appliances, or body implants are used.



Ropeway transportation of goods and persons (with ITC of services)



Renting a vehicle or transporting goods, including fuel costs



*The rates will go into effect on July 18, 2022, subject to CBIC approval.

New GST Rates : What Gets Costlier

what becomes costlier
  • 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.

GST Rate Revision : What Gets Cheaper

what becomes cheaper
  • 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%. 


"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.

Get the Best GST Solution for your business with GSTHero

  • Claim maximum ITC possible with innovative reconciliation that is 100% online and cloud-based.
  • Data accuracy, safety, and security are all ensured.
  • Appropriate for small, medium, and large enterprises.
  • Stop all ITC leaks for the fiscal year.
  • GSTN server authentication data.
  • Up to 8 years of data storage.
  • Reports on e-Invoice reconciliation.
  • Create an e-invoice with a single click using best einvoicing solution.

For these reasons, a company should choose tools such as GSTHero for identifying, assessing and recommending corrective steps. Furthermore, this solution saves time and money on paying fines and interest if GST compliance requirements are not satisfied.

GST Return Filing

File your GST returns in minutes, not hours!

Get Live Demo and experience the simplicity by yourself.

  • GSTR 1 and GSTR 9C  all returns made automatically and faster
  • GSTR 1 data is auto populated
  • Auto-notification to your defaulting suppliers
  • 1-click data preparation

Sameep Mohite

About the author

Sameep Mohite is a computer engineer with a passion for GST. He has written many articles on GST, Finance, and Technology topics.

He is a GST expert who writes for GSTHero. He wants to ensure you know what you're paying for and why.

He enjoys explaining complex technical terms in primary, easy-to-understand language.

Follow us: