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india

GST Council Meeting Updates (June 28, 2022)

  • Tax Rates revision approved
  • Witdrawal of exemption on services by department of posts except post cards, envelopes less than 10 gm
  • Increase in GST on e-waste from 5% to 18%
  • Withdrawal of exemption to services provided by RBI, Sebi, IRDAI, FSSAI
  • Hotel accommodation below Rs 1,000 be taxed at 12%
  • Withdrawal on GST exemption on storage and warehousing of taxable goods like sugar, natural fiber
  • Withdrawal of exemption on services like fumigation of warehouses
  • Withdrawal of exemption to business class air travel for northeastern states
  • Withdrawal of exemptions on road and rail transport, when such services are input for business
  • Withdrawal of exemption on services by way of slaughtering of animals
  • Input tax credit Refund on account of inverted duty structure in edible oils, coal disallowed.
  • GST Council approves to replace the term ‘branded’ with ‘pre packaged and labelled’ for retail sale to avoid disputes. (Branded cereals, food attract 5% GST currently)
  • Exemption for food items, cereals sold loose or unlabeled continued.
  • Tax increased LED lamps, ink, knives, blades, power driven pumps, dairy machinery from 12% to 18%
  • Tax increased on milling machinery for cereals from 5% to 18%
  • Tax increased on solar water heater, finished leather from 5% to 12%
  • Tax increased on work contract services supplied to govt, local authorities to 18% to correct inversion
  • Tax increased on specified goods for petroleum from 5% to 12% on input goods to correct inversion

Source CA Rishabh Aggarwal

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