47th GST Council meet: Here's what became expensive after Tuesday meeting

The GST Council today is expected to take up extending compensation to the state

In the 47th meeting of the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, on Tuesday, officials approved hiking the rates for some goods and services while removing exemptions for several mass consumption items to simplify the rate structure. 

The GST Council on Wednesday is expected to take up extending compensation to the states. The council will also impose 28 per cent tax on casinos, online gaming, racing, two members told Business Standard earlier.

Here's what will be more expensive after Tuesday's rate hike:

• The GST Council agreed to levy 18 per cent tax on cheques, lose or in book form
• The council increased GST on e-waste to 18 per cent, from an earlier rate of 5 per cent
• Hotel accommodations below Rs 1,000 will be taxed at 12 per cent
• The council agreed on withdrawal of exemption on services by the postal department, except post cards, envelopes less than 10 gms
• The council also agreed to withdraw GST exemption on storage and warehousing of taxable goods like sugar, natural fiber and on services like fumigation for warehouses
• GST levied on LED lamps, inks, knives, blades, power-driven pumps and dairy machinery will be increased to 18 per cent from 12 per cent
• The council has agreed to replace the term 'branded' with ‘pre-packaged and labelled’ for retail sale to avoid disputes. Currently, branded cereals, food attract 5 per cent GST
• Tax on miling machinery for cereals will be increased to 18 per cent from 5 per cent while GST on solar water heater, finished leather will be increased to 12 per cent
• GST on specified goods for petroleum will be increased to 12 per cent from 5 per cent on input goods to correct inversion. Meanwhile, tax on work contract services supplied to govt, local authorities to 18 per cent to correct inversion
• The council agreed to withdraw exemption to business class air travel for northeastern states, on road and rail transport, when such services are input for business
• Exemption on services by way of slaughtering of animals will also be withdrawn
• The council agreed to disallow input tax credit refund on account of inverted duty structure in edible oils, coal