An important update for taxpayers and businesses as CBIC has notified new GST Rate Changes. These rate changes were recommended by the GST Council. The 47th GST Council Meeting was held in Chandigarh for two days i.e. 8th and 29th of June 2022. The GST Council Meeting announced several new changes and one of the most important updates was GST Tax Rate Changes. Lets understand the latest updates as CBIC notifies GST Rate Changes effective from July 18, 2022.
What is the GST Rate?
The various different GST slabs have been formulated to increase transparency between buyers and sellers in the taxation system. Each slab contains various categories of goods and services based on specific criteria.
In India there are thousands of products and services covered under the four major GST slabs. They comprise rates of five percent and 12 percent, as well as eighteen percent, and twenty eight percent.
The GST Council periodically revises the products and services that fall under each slab rate in order to adapt them to market and industry trends.
The new structure ensures that the most essential items fall in lower tax brackets, whereas the most expensive items and services are subject to higher GST rates. Recently, the 47th GST Council meeting was held.
As a result, several key changes were made to tax slabs of various items.
Latest Update as CBIC notified new GST Rate Changes
The Central Board of Indirect Taxes and Customs (CBIC) informed the public that all changes to tax rates for GST rates will be in effect starting from July 18, 2022.
In accordance with the recommendations from the 47th GST Council meeting that was held in Chandigarh, The Goods and Services Tax (GST) will be increased on a wide range of products.
Finance Minister Nirmala Sitharaman previously announced rate adjustments of various items, including knives equipped with cutting blades spoons, forks and spoons skimmers, ladles and cakes servers, fishing knives sugar tongs, butter-knives and similar tableware for kitchen or dining, bicycle pumps, parts of vacuum or air pumps and compressors for bicycle pumps.
The GST on drawing or printing ink LED lamps, lighting and fixtures, as well as their metallic printed circuit boards has been raised to 18 percent from 12 percent.
The rate increase for the solar-powered water heating systems and heaters has increased to 12 percent, instead of the previous five percent.
The rooms in hospitals that are rented for exceeding Rs 5,000 will have a 5 percent levy on the rooms.
Hotels will become more costly since hotels that charge less than ₹1,000 per day will also fall under the GST Regime.
In short, the new rate changes will come into effect soon and the businesses having GST Registration online should keep this in mind while supplying the goods and services.
CMP-08 GST Return due date for Quarter 1 FY 2022-23 deadline extended
Moreover, If you want any other guidance relating to GST Registration, please feel free to talk to our business advisors at 8881-069-069.
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