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Now Modi government brought so many changes to the new GST rate 2022. There are lots of changes in the upcoming GST rules. A certain product that was exempted by GST is also included in GST 2022.
It is a big shock for the citizen of India. Because Indian citizens are liable to pay taxes that were exempted till now. Even GST is also increased from 5 to 6% in every product.
In this blog, we are going to analyze the list of new GST rates in 2022 by the Modi government.
Rice, Wheat, and Atta
Now government made a hike in GST for rice, wheat, and Atta. Previously these items are exempted from GST. According to the new GST rate, 2022 included these items as well.
It will be heavier for the customers to purchase rice, wheat, and Atta. Because GST 2022 employees 5% of GST on these items. So consumers will have to pay more than the actual price.
These are some of the basic necessities for every citizen. Without these items, anyone cannot survive. Employing GST on these basic items affects the financial status of the middle and lower class of India.
Hotel Stay GST: New GST rate 2022
If you love to travel cities to the city then you have to pay more for your days from now on. Because earlier hotel stays did not have any kind of GST. But now new GST rate 2022 to applies 12% of the GST charge even with less than a thousand rupees.
So for the travelers, it is advised to take 1 more money than usual for any kind of trip within India. Because 12% GST on hotels will have a lot of impact on customers’ pockets.
Stationery Items: New GST rate 2022
Modi’s government did not show any e mercy on stationery items as well. stationery items such as pencils, paint sharpeners, and printer ink prices are gone up now. The new GST rate in 2022 increased 6% from 12 % to 18%.
Therefore students have to pay more for their stationery items from now on. Again Indian parents have to pay more for their children’s education. This rise in GST put a heavy burden on Indian parents.
Modi’s government is Keen on collecting taxes rather than thinking about the Welfare of the people.
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Hospital stays
In India, hospital services are one of the costliest things. Now, this costliest thing will become still costlier. People can come back from the hospital if only pay the bill completely.
Because Modi Government implies tax on ICUs as well. Earlier these services are not included in the GST. But now new GST rate 2022 implies 12% of GST charges for the ICU’s stays.
The ICU stays are inclusive of GST only if the price is greater than 5000 rupees. This kind of tax will surely hit the people of India very badly.
Now, hospital services are nowhere reachable to the common people. After hiking with the GST tax, accessibility will further drain India.
Renewable energy devices and their parts: New GST rate 2022
There is a lot of demand for renewable energy devices. Solar heater, solar panels, and many more. Everyone is transforming into a greener energy source. So it is high time to promote renewable sources of energy.
But now the Modi government has also implied GST on the solar water heaters. Earlier GST on the solar water heater was at 5%. According to the new GST rate, 2022 GST increased by 7% and became 12%.
This is not a good move from a government. Instead of reducing GST on renewable energy devices, it made it higher. It will impact directly to the consumers. If prices raise customers will avoid buying solar water heaters and other renewable energy devices.
GST on Unbranded items: New GST rate 2022
Most often leave I have seen a lot of branded items in stores. Even those items are under GST 2022 list. The government has shown No Mercy to any product in GST 2022.
So now all unbranded food items have a GST of 5%. Therefore unbranded food items will also hide their prices and reach far away from the consumer’s point of view. Because these unbranded food items were quite accessible for lower and middle-class people.
GST 2022 comprises branded items like pickles, chips, and other snacks.
Milk, curd, and lassi: New GST rate 2022
Tat examination products such as milk curd and lassi are also under GST 2022 list. So these diary products which were very affordable and accessible are also going to be a bit costlier.
This will make people’s pockets a bit heavier white purchasing dairy products. Modi’s government makes people’s life to harder to live. This diary product is the daily needs of every individual. If these prices increased, eventually it has to be paid by the consumer.
Diamond
It is one of the costliest metals. For No Surprise, it will become still costlier. Because the new GST rate 2022 charges 1.5% of GST. Earlier this GST it was around 0.25%.
Railway and locomotives
Railway parts and other locomotive parts prices are going to surge. Earlier railway parts and locomotive parts had a GST of 12%. But now the new GST rate of 2022 makes them a bit costlier up to 18%.
These are some of the essential commodities which come under the Hike of GST 2022.
Modi government not only increases the GST of certain commodities. Simultaneously it took some measures to decrease GST on some of the services also.
Renting trucks will become way cheaper because GST has come down from 18 % to 12%. So it is a good move from the Modi government. Because it is promoting transportation. It will be very helpful for B2-B businesses.
Even the person who is transporting via Ropeway is also cut down GST to also 6%.
Licensing services to Broadcast
Modi government has also hiked the GST on broadcasting services too. Licensing services to broadcast shows and original film, radio, and TV programs hiked GST prices up to 18%.
Leather items
GST on leather items has increased to 7%. From 5% to 12% after the new GST rate in 2022. So it will be a bit costlier for purchasing leather items.
What is GST
GST means Goods and Services tax. This tax is the unified tax system brought by the Modi government in 2017. In simple words, GST means a single tax for a single Nation.
Before GST was introduced many taxes were to be paid. But after the GST arrival, only GST should be paid for the product.
Are you here there were two types of taxes
Direct taxes
Indirect taxes
In direct taxes, one has to pay taxes accordingly to his income. So here the direct tax directly depends on the income.
On the other hand, indirect taxes comprise many taxes such as
- Sales Tax
- Entertainment Tax
- Service Tax
- Custom Tax
- Exercise Tax
These are all taxes that have to be paid earlier before the arrival of GST. After the announcement of the GST rules in India, a product should be paid under GST. And all other taxes were exempted. In simple words, GST is the unified form of all the indirect taxes.
Types of GST
There are three types of GST
- SGST(State Goods and Services Tax)
- CGST (Central Goods and Services Tax)
- IGST ( Integrated Goods and Services Tax)
Earlier, before the concept of GST, a product can be sold within a state by comprising a tax called VAT. But if there is an inter-state sale then that product price is comprised of VAT and CT taxes. Ultimately, increasing the price of the product. Even taxes like Excise duty, sales tax, and many taxes should be paid.
As a result, the price of the product is going to be a roof high. But GST changed everything. If the product is sold within the state then the product is comprised of SGST and CGST. Here are the taxes collected by the respective state and Central governments. Here the central government is the ruling party of the country. Presently ruling party of India is BJP.
During inter-State trade, SGST and CGST are exempted. Only IGST is inclusive of the product’s price. In this way, GST made all the taxes simple and easy.
New GST rate 2022 is the 47th GST council meeting. In this meeting, GST rates were raised sky-high with all the essential commodities and services.
Is GST 2022 Good?
GST e is a unified tax system in India. But GST 2022 had increased the prices of every commodity and service. Modi government import GST new rules in July 2022.
But it was not a good time to bring new GST rules. Because many people have lost their jobs and many businesses are recovering from the coronavirus pandemic. So everyone is recovering from their financial crisis.
Every people are struggling to earn money. E because the rapid growth of inflation, job loss, and share market crash made people’s life still tougher. During this time, new GST rules are not entertained by the people.
Early cylinder prices are gone over 1000 rupees and even fuel prices are also crossed 110 rupees. So people cannot take more than this. The new GST rate in 2022 will increase the burden on the people.
Modi’s government would have decreased GST prices if they wanted to look after the Welfare of the people. But with this tremendous increase in every commodities price ultimately hurts the people of India.