New GST rates from today: Check what is costlier and what becomes cheaper

New Delhi, July 18: With the new Goods and Services Tax rates that come into effect from Monday, consumers may now have to shell out more for rice and wheat but the transport of goods and passengers by ropeways get cheaper from today.

The Central Board of Indirect Taxes and Customs on Sunday said single packages of food items like cereals, pulses and flour weighing up to 25 kg will be considered as 'prepackaged and labelled', and liable to five per cent GST from July 18.

People will now have to spend more on rice, wheat and flour, among other items, if branded and packed in a unit container as the revised Goods and Services Tax comes into effect from Monday.

It also clarified that if a retail shopkeeper supplies in loose quantity the item bought from a manufacturer or a distributor in a 25-kg pack, such sale to consumers will not attract GST.

The CBIC on Sunday night issued a set of frequently asked questions (FAQs) on GST applicability on 'pre-packaged and labelled' goods, just a day before the five per cent GST on such items becomes applicable.

In the context of food items (such as pulses, cereals like rice, wheat, flour etc), the supply of specified pre-packaged food articles would fall within the purview of the definition of 'pre-packaged commodity' under the Legal Metrology Act, 2009, if such pre-packaged and labelled packages contained a quantity up to 25 kilogram (or 25 litres).

"It is clarified that a single package of these items (cereals, pulses, flour etc.) containing a quantity of more than 25 Kg/25 litre would not fall in the category of pre-packaged and labelled commodity for the purposes of GST and would therefore not attract GST," it said.

The CBIC said the supply of pre-packed atta meant for retail sale to ultimate consumer of 25 Kg shall be liable to GST. However, supply of such a 30-kg pack thereof shall be exempt from levy of GST.

The board also said that GST would apply on a package that contains multiple retail packages, for example a package containing 10 retail packs of flour of 10 kg each, the CBIC said.

It said for the purpose of GST, "pre-packaged commodity" would mean a commodity which, without the purchaser being present, is placed in a package of whatever nature, whether sealed or not, so that the product contained therein has a pre- determined quantity.

Any such supply which requires declaration under the Legal Metrology act would attract GST, it said.

Other items that will be dearer are printing, writing or drawing ink, knives with cutting blades, paper knives, pencil sharpeners and blades, spoons, forks, ladles, skimmers, and cake-servers. These items would now attract 18 per cent instead of 12 per cent.

LED lamps and solar water heaters too will attract 18 per cent tax. Further, Tetra Pak (or aseptic packaging paper) used for packaging liquid beverages or dairy products will now attract 18 per cent GST instead of 12 per cent. Cut and Polished diamonds will be taxed at 1.5 per cent compared to 0.25 per cent earlier.

Also, hotel accommodation rates up to Rs 1000 per day will now be now taxed at 12 per cent, On the other hand, tax on transport of goods and passengers by ropeways would decline to 5 per cent from 18 per cent. Renting of truck/goods carriage where the cost of fuel is included will be cheaper as the tax is reduced to 12 per cent instead of 18 per cent.