GST New Delhi: The GST Council has accepted the recommendations of a group of ministers from states on withdrawing exemptions with a view to rationalising the tax.
The highest decision-making body on GST is headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and UTs.
On the first day of the two-day meeting, the panel accepted the recommendations of the Group of Ministers (GoM) for reviewing the exemption from GST that packed and labelled food items currently get.
After this, pre-packed and labelled meat (except frozen), fish, curd, paneer, honey, dried leguminous vegetables, dried makhana, wheat and other cereals, wheat or meslin flour, jaggery, puffed rice (muri), all goods and organic manure and coir pith compost will not be exempted from GST and will now attract a 5 percent tax.
An 18 percent GST will be levied on fees charged by banks for the issue of cheques (loose or in book form).
Maps and charts including atlases will attract a 12 percent levy.
Unpacked, unlabelled and unbranded goods will continue to remain exempt from GST.
A 12 percent tax on hotel rooms below Rs 1,000 per day will be applicable, as against the current tax exemption.
GST rate rationalisation is necessary to increase the weighted average GST rate that has slumped to 11.6 percent, against 14.4 percent at the time of launch.
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