If steep inflation had jeopardized your household budget already, be prepared for some additional burden starting today. As the authorities revise the rate of goods and services tax (GST) on several items to increase government revenue, streamline rates and reduce disputes, consumers may have to spend more on their daily groceries.
Among the key items that have undergone rate change, packaged and labeled food items, weighing up to 25 Kg per pack or the retail packs, are set to become costlier. While earlier, these goods were exempted from GST, now a 5 percent tax will be applicable to them. This means that consumer staples like packaged wheat flour or atta, pulses (various types of dal, chana, etc.), and cereals like packaged rice will become dearer by up to 5 percent from today. Similarly, milk, curd (dahi), lassi and puffed rice attract 5 percent GST.
Household items and office stationaries like LED lamps, lighting, fittings paper knife, knives with cutting blades, paper knives, pencil sharpeners, and blades, spoons, forks, ladles, skimmers, and cake-servers, among other items, will now attract 18 percent GST instead of 12 percent earlier. According to manufacturers, higher GST may hike the prices of these items by 4-6 percent.
Additionally, low-cost hotel rooms (tariff of up to Rs 1,000 per night) would now attract 12 percent GST. Earlier, these rooms were exempted, which means travelers now have to spend 12 percent more on cheaper hotel rooms.
For certain items, GST rates were reduced too. Among these, renting trucks and/or goods carriers where fuel charges were included, will be cheaper from today as the rate of GST has been reduced to 12 percent from 18 percent earlier.
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