GST Council Meet: What Will Get Cheaper & What Will Get Costlier?

The GST Council meeting on February 18, chaired by Union Finance Minister Nirmala Sitharaman, has introduced several key announcements, which include the approval for the formation of the GST Appellate Tribunal and clearance of pending GST compensation. Moreover, there have been several tax cuts and GST implementations made on certain goods and services that will directly impact consumers and industries. In this article, let’s take a look at the items that will become costlier or cheaper due to these GST changes.

The council has approved a reduction in GST rates on various items, including liquid jaggery (Raab), pencil sharpeners, coal rejects, and data loggers. The entrance exam fee for all exams conducted by the National Testing Agency will also be exempted from GST. Furthermore, the government is also expected to announce subsidies and tax exemptions on millet.

The GST Council has implemented a tax on services provided by courts and tribunals, which means people can expect to pay extra for availing courts’ services. There will also be an implementation of the late fee paid during a delay in filing annual returns. Additionally, there will be a hike in GST rates on pan masala, gutkha, and chewing tobacco.

The GST Council is also expected to announce a decision on taxation on online gaming, horse racing, casinos, and other services that are currently being provided without any tax.

The rate of GST on liquid jaggery most likely be reduced from 18% to nil or to 5%. The GST rate will be nil if it's sold loose. If it is pre-packaged and labelled, 5% will be charged. This move will be helpful for farmers who produce jaggery, especially those in Uttar Pradesh and Bihar.

Data loggers are electronic devices that record environmental data over time or in relation to the location of the device. The GST on data loggers has been reduced to nil from 18%, making it a more affordable option for industries and researchers who need to use them for their work.

The GST Council meeting has brought some good news for consumers and industries, with the reduction in GST rates on various items. Liquid jaggery, pencil sharpeners, coal rejects, and data loggers will become cheaper, while pan masala, gutkha, and chewing tobacco will get costlier. The formation of the GST Appellate Tribunal will also help in bringing down the huge number of pending cases for resolution. The government's decision on the taxation of online gaming, horse racing, and casinos is also awaited.