GST Council decisions: Here is what would cost more and less now

New Delhi, July 11:  The GST Council has announced reduction and increase in GST rates on several goods and services after its 50th Council Meeting held here on Tuesday.

The Council also approved to tighten measures against excess input tax credit claims by businesses, along with strengthening the registration process to effectively deal with fake registration.

Ziraat Times here produces a list of items that will get costlier and cheaper after the GST Council meeting on 11 July 2023:

Items that will get costlier:

Online gaming:

The GST Council has decided to levy a 28% GST on online gaming, both skill-based and chance-based. This means that the cost of online gaming will increase by 28%.

Utility vehicles (MUVs and XUVs):

The GST Council has clarified the definition of “utility vehicles” for the purposes of GST. Utility vehicles will now be defined as vehicles that are primarily used for transportation of passengers or goods, and not for recreational purposes. This change will mean that GST will be levied on the sale of utility vehicles, even if they are sold online. The GST rate on utility vehicles will be 28%, plus a 22% cess.

Luxury cars and SUVs: The GST Council has increased the compensation cess on luxury cars and SUVs. The cess will now be 22%, up from 15%. This means that the cost of luxury cars and SUVs will increase by 22%.

Satellite launch services:

The GST Council has clarified the rules for taxing satellite launch services. Satellite launch services will now be taxed at 12%.

Items that will get cheaper:

Imitation zari threads or yarn (tax reduced from 12 per cent to 5 per cent)

Papads and kachri:

The GST Council has reduced the GST rate on papads and kachri from 18% to 5%. This means that the cost of papads and kachri will decrease by 13%.

Drugs and food for special medical purposes:

The GST Council has exempted drugs and food for special medical purposes from GST. This means that the cost of these items will not change.