A lot of people are still not clear about GST rates on certain goods and services and there are a lot of myths that are doing the rounds. Here’s a reality check for both GST rates on certain goods and services.
Myth 1: GST charged on cash withdrawal from banks.
Truth: No GST is levied when withdrawing cash from banks. In addition, there is no tax on customer cheques.
The Union Finance Nirmala Sitharaman on August 2, 2022 in Rajya Sabha said that, there is no GST on cash withdrawals from banks; nevertheless, the GST tax will apply only when the bank purchases cheque books from the printer. “5+5=10 transactions per month are totally free when withdrawn from ATMs,” she said.
Myth 2: GST imposed on all ICU rooms and emergency services hospitals.
Truth: Only 5% tax is imposed on hospital rooms that have a rent above Rs.5,000.
It may be noted that w.e.f. 18.07.2022 the services provided by a clinical establishment by way of providing room [other than Intensive Care Unit (ICU)/Critical Care Unit (CCU)/Intensive Cardiac Care Unit (ICCU)/Neo natal Intensive Care Unit (NICU)] having room charges exceeding Rs. 5,000/day to a person receiving health care services shall be liable to tax @ 5% (without ITC).
Myth 3: GST imposed on loose food items
Truth: No GST imposed on loose food items. It is to ensure the poor are not burdened. Rather there is a change in modalities of imposition of GST on ‘branded’ specified goods to “pre-packaged and labelled” specified goods. For more details CLICK HERE.
Myth 4: GST imposed on all existing crematoria, mortuaries or funeral services.
Truth: Tax is levied on construction of new crematorium but not on existing crematoria, mortuaries or funeral services.
Source: livelaw.in
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TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
