Following the GST Council’s consideration of recommendations aimed at “ironing out inconsistencies” in the structure, the Goods and Services Tax was raised for many items. The GST Council voted to increase taxes on a variety of items, including ink, pencil sharpeners, cutlery, LED lamps, power-driven pumps, and dairy, poultry, and horticulture machinery.
The GST on ink, LED lamps, lights, and fixtures, as well as their metal printed circuit boards, has been raised to 18% from the previous 12 percent. The GST rate on solar water heaters and systems has been raised from 5% to 12%.
The rate for manufacturing leather goods and footwear has been raised to 12%, and the rate for works contracts for roads, bridges, railways, metro, effluent treatment plants, and crematoriums has been raised to 18%.
The GST Council’s recommended rate changes will take effect on July 18, 2022.
However, a proposal to levy a 28 % GST on casinos, online gaming, horse racing, and the lottery was postponed, according to Union Finance Minister Nirmala Sitharaman after the council’s two-day meeting.
“Following Goa’s request for special treatment for casinos, it was decided that GoM will give one more hearing for online games and horseracing as well; the GoM will submit the report by July 15 and GST Council will hence meet again on this GoM’s agenda in 1st week of August”, said the finance minister.
At the meeting, states seeking an extension of the guaranteed compensation period were unable to make any progress. States, according to Sitharaman, wanted compensation to be extended for a few years, if not five more. She also stated that a Group of Ministers will be formed to address various concerns raised by states regarding the GST Appellate Tribunal and amendments to the CGST Act.