Now, pay 5% GST on pre-packaged, labeled food items; price of rice, curd, lassi to go up

Visakhapatnam/Hyderabad: Be prepared to add some extra money into the kitchen budget as the common man will now have to pay more for their favourite food items.

From 18 July, pre-packaged and labeled products like curd, lassi, buttermilk, paneer, wheat, rice, honey, barley, and oats will attract a goods and services tax (GST) of 5%. While this is a burden for the common man who has just come out of the COVID-19 pandemic, retailers and shopkeepers will also face challenges in dealing with the price changes.

The GST Council, in its meeting, unanimously decided to hike the prices of several daily essential items. "Pre-packaged and pre-labeled retail packs in terms of Legal Metrology Act, including pre-packed, pre-labeled curd, lassi, and buttermilk, will attract a GST at a rate of 5% from 18 July," said the GST council.

Also, 18% GST will be imposed on the fee charged by banks for the issue of cheques.

Many people have reacted negatively to the GST rates. Especially the GST imposed on basic food essentials would affect many people. "Curd, paneer, buttermilk, oats are some of the basic and daily food essentials in the kitchen. The COVID pandemic has impacted middle-class people and now the increase in prices would add extra budget every month," said Saritha, a homemaker.

Here is the list:

· 5% GST on curd, lassi, buttermilk, paneer, jaggery, natural honey, puffed rice, flattened rice, rice, wheat, barley, oats, wheat, rice flour.

· Up to 18% GST increase on LED lamps, ink, knives, blades, pencil sharpener, blades, printing, writing, etc.

· 18% GST on power-driven pumps, bicycle pumps, and dairy machinery.

· 18% GST on fee charged by banks for the issue of cheques.

· 5% GST imposed on rooms that cost more than Rs. 5,000 (non-ICU) in hospitals.

· 12% GST on hotel rooms with less than Rs. 1,000 per day.

· 12% GST on solar water heater and system.

· 12% GST on printed maps and charts.

· Works contract for roads, bridges, railways, metro, effluent treatment plant, crematorium, and others by 18%.

· 18% GST for work contracts for historical monuments, canals, dams, pipelines, plants for water supply, educational institutions, hospitals supplied to Central, state governments, local authorities, and sub-contractors.

· 18% GST on works contracts for roads, bridges, railways, metro, effluent treatment plant, crematorium.

· 18% GST on machines used for cleaning, sorting, grading seeds, and grain pulses, machines in the milling/cereals industry, and wet grinder.

· 12% GST on leather (prepared, finished, chamois and composition).