New GST Rates: 10 Household Items That Will Cost More From July 18; Here’s What Gets Expensive

The prices of daily essential items like curd, lassi, rice, paneer and others are expected to increase after July 18, as the Goods and Service Tax rates on these items have been hiked.

GST Rate Hike: From next week, several household items including hotels and bank services among other things, will get costlier after the GST rates were hiked for several items in the 47th Goods and Services Tax meeting in Chandigarh last month. The GST rate hike on these items will be implemented from Monday, July 18, after which the common man will have to pay extra to buy day to day items, further increasing their kitchen budget. Products like curd, lassi, buttermilk, paneer, wheat, rice etc which are pre-packaged and labelled, will attract a GST of 5% from 18 July.

NOTE:  In any agri and dairy products, if sold loose or packed in front of the customers, will continue to be exempt from GST. Earlier, only branded packaged rice was under the purview of GST. Now, all unbranded, pre-packaged rice/ rice flour/ wheat flour will attract GST.

Here’s a list of household items that will get more expensive from Monday July 18:

• Curd, Lassi, Buttermilk (5% GST)
• Paneer (5% GST)
• Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery (5% GST)
• Khandsari Sugar (5% GST)
• Natural Honey (5% GST)
• Puffed rice (Muri), flattened or beaten rice, (Chira), parched rice (khoi), rice coated with
  sugar (Murki) (5% GST)
• Rice, Wheat, Rye, Barley, Oats (5% GST)
• Wheat & Meslin Flour (5% GST)
• Tender coconut water (12% GST)
• Rice Flour (5% GST)

Other items that will get costlier from Monday July 18

• LED lamps; ink, knives, blades, pencil sharpener, blades, spoons, forks, ladles, skimmers, skimmers, cake servers; printing, writing and drawing ink; fixture and their metal printed circuits board by 18 per cent.
• Power-driven pumps, bicycle pumps, dairy machinery by 18 per cent.
• Machines used for cleaning, sorting, grading seeds, and grain pulses; machines used in milling/cereals industry; air-based atta chakki and wet grinder by 18 per cent.
• Cheques, lose or in book form by 18%
• Solar water heater and system by 12%
• Leather (prepared, finished, chamois and composition) by 12%
• Printed maps and charts of all kinds by 12%
• 12% GST on hotel accommodation priced up to Rs 1,000 per day
• Room rent, except ICU, more than Rs 5,000 per day patient charged by a hospital taxed 5% to the extent of charge of the room without ITC
• Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium and others by 18%
• 18% GST for work contract for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals etc supplied to central,m state goverments and local authorities and sub-contractor thereof
• Works contract supplied to central and state governments, union territories & local authorities for earthwork and sub-contracts thereof 12%

The GST is a single, indirect tax levied by the central government. The GST was introduced on July 1, 2017, and states were assured of compensation for the revenue loss till June 2022, arising on account of the GST rollout.