GST New Rates 2022: What gets cheaper and dearer?
From July 18, 2022, GST new rates 2022 to be applicable on household items, hotels, and banks among other goods and services prices have increased in accordance with the 47th Goods and Services Tax meeting held in Chandigarh the previous month.
There from Monday (yesterday), the common man has to pay hiked prices on the mentioned goods and services.
That implies payment of high cost, be it buying products for the kitchen such as curd, lassi, buttermilk, paneer, wheat, rice, etc which are pre-packaged and labeled, or availing banking and hotel services. However, in the case of packaging Agri or dairy products in front of consumers, GST won’t be levied on the same.
In addition to that, previously, only branded packaged rice was subjected to GST, although, with the introduction of new GST rates contemporary, it will also be applicable to unbranded, pre-packaged rice flour, or wheat flour.
As mentioned by Finance Minister Nirmala Sitharaman, the GST rate hike is to cover the “inefficiencies,” in the value chain, including that, the Finance Minister also mentioned that no state has opposed the GST rate increase.
Let’s commence with a basic understanding of GST.
What is GST | Goods and Service Tax?
Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. GST is typically a multi-stage and destination-orientated tax, therefore, it is levied on every value addition. Thus, eliminating distinct indirect taxes.
GST was first embarked on July 1st, 2017 by the President of India accompanied by the Government of India. Moreover, the Goods and Service Tax has been introduced with the primary objective of eliminating double taxation or tax on tax that cascades from a distinct level of manufacturing to consumption.
Therefore, it supersedes several Central Taxes, such as excise tax, service tax, CST, and State Taxes like VAT, Octroi tax, Entertainment tax, etc.
With a handful of understanding of what is GST, let’s move on to New GST rates in the next section.
New GST Rates | GST Rate Hike | List of Household Items Increased in GST
- 5% GST is applicable on labeled and pre-packed food items such as Atta, paneer, curd, etc.
- 5% GST is applicable on hospital rooms with rent over Rs 5,000.
- 12% GST is levied on maps, atlass, and charts.
- Tetra packs will attract 18% Goods and Service Tax (GST).
- Banks will charge a fee of 12% GST on the issuance of a checkbook, including in case of loose or book form.
- GST rate hike from 12% to 18% GST on products like printing, writing, or drawing ink; knives with cutting blades, pencil sharpener, and paper knives; drawing and marking our instruments.
- GST rate hike on the solar water heater from 5% to 12% GST.
- The GST rate increased from 12% to 18% on services such as work contracts for roads, bridges, and railways, including effluent treatment plants, and crematoriums.
- GST is reduced from 12% to 5% on products such as ostomy appliances, including transportation of passengers and goods.
- Tax reduced from 18% to 12% GST on renting of truck and goods carriage where the cost of fuel is included.
- GST is exempted on passenger transportation to and from northeastern states, including Bagdogra, restricted to economy class.
- A concession of 5% on electric vehicles, whether the battery pack is fitted or not.
- Cut and polished diamonds will be taxed at 1.25% from 0.25.
- 12% GST will be applicable on hotel accommodation per day.
- GST rate hike from 5% to 18% GST on rates of machines for cleaning, sorting, or grading seed, including grain pulses, machinery used in the milling industry or for working of cereals, etc, on “Pawan Chakki,” or “air-based chakki,” and “wet grinder.”
- The GST rate increased from 12% to 18% for cleaning, sorting, or grading eggs, fruits, or other agricultural produce and its parts, including milking machines and dairy machines.
- GST tax exemption is provided for training or coaching with respect to recreational activities related to art, culture, or sports when provided by an individual.
- GST exemption is withdrawn from transportation by rail, a vessel of railway equipment, including storage or warehouse of commodities.
- The GST tax has been reduced from 12% to 5% on transportation of passengers and goods through ropeways.
Keeping the importance of GST payment in mind, we would also urge concerned individuals to complete GST Registration in a timely manner to ensure conformance with compliance requirements. If not, then the GST Council can impose penalties and fines on you for not ensuring conformance with compliance.
For a better understanding of the benefits of GST registration, have a look at the next section.
What Are the Benefits of GST Registration | GST Registration Benefits?
- Eradicate the tumbling effect of the tax.
- Provide choice to the small taxpayers, comprising some category of service providers and manufacturing with turnover equal to Rs 20 lakh to pay tax at a flat rate excluding credits.
- Assist in keeping the minimal level of exempted goods and services.
- Ameliorate logistics efficiency.
- The exemption limit applies to SGST and CGST and taxpayers with a turnover of Rs 20 lakh (in some hilly and Northeastern areas, annual turnover restraint is Rs 10 lakh), under Article 279A.
- Initially, the taxes imposed on the sale of goods and services are contemporary due to the supply of goods and services.
With the understanding of the benefits of GST registration, let’s have a quick look at how to obtain a GST certificate.
How to Obtain a GST Certificate | GST Registration Process
- Login credentials will be generated by creating a profile under the "New Registration" option on the GST official portal.
- After registration, the TRN number will be generated
- Once the TRN number is generated, the information or documents for GST registration online will be provided or affixed.
- The application will be submitted either through an E-signed method or Electronic Verification Code or in the case of the registration of companies, a Digital Signature Certificate must be obtained.
- Once the application is submitted, an ARN number will be generated (to track the application status).
Note- After obtaining TRN, you need to complete the GST process in 15 consecutive days.
The process of GST certificate process is perplexing and tedious, yet, necessary to complete to avoid penalties. Thus, a GST registration consultant would be of great help for your convenience and guide you throughout the process of a GST registration certificate.
Consequently, we - Delhi's award-winning compliance service provider guarantee to provide you prompt services while ensuring high-standard services from our knowledgeable GST registration consultant.
Therefore, our GST certificate services are apt and nonpareil.
Here, let’s have a look at our role in GST registration.
How We Make GST Registration Seamless?
- Our GST registration consultants will provide you with complete assistance throughout the process.
- Our GST registration consultant will ensure to help you with documentation to avoid inaccuracy and ensure the availability of documents for GST registration when required.
- To enhance your convenience, our GST registration consultant will keep track of your GST registration online.
- Our GST certificate consultants guarantee to keep you informed and ensure to provide you with proper follow-ups.
- In case of any query, a GST registration consultant will provide you with the most satisfactory solution.
As mentioned, GST registration online is challenging, any delay in filling the application or late submission of documents for GST registration could impose a penalty. As a result, a company/firm requires professional assistance to complete the GST registration certificate process.
Thus, we have been an exemplary example of understanding the needs of our clients and completing the GST certificate process successfully because our GST registration consultant will provide you with prompt and high-standard services while ensuring the convenience of our clients at a reasonable cost.
Hence, for expert and professional services, contact our GST registration consultant immediately for a GST registration check or GST Check Online and GST registration certificate. Be it understanding the requirement of documents for GST registration to GST registration certificate, we have got you covered.