Hike in GST rates fuelled inflation
Unfortunately there has been an increase in GST rates on various goods and services and this hike in the rates of the GST on many goods fuelled inflation in the country. This increase in the rates of GST on different goods and services resulted in the increase in the prices of many goods and services and it has broken the back of the common man and as such the GST council should consider the roll back of the levying and increase in the rates of the GST on some goods and services so that it may not lead to inflation in goods and services. The curd, Lassi, cheese and honey has become costly and the people have to pay GST at the rate of 5 per cent on these goods. The packed curd, Lassi, cheese, honey, cereals, rice, wheat, flour, mutton, fish purchases have been levied 5 per cent GST. Besides these essential goods, rooms in the hospitals costing more than Rs 5,000 have been levied 5 per cent GST and thus there is hike in the rates of the charges of rent of rooms of hospitals which is a cause of grave and great concern. Rooms of the hospitals which were without ICU were levied 5 per cent GST which has come into effect from July 18, 2022. In the mid of continuing inflation your pocket will become more loose. In last month meeting of the GST council it was decided to make changes on the rates of the GST on various goods and the effect of the changes on the rates of GST on various goods and services has taken effect from 18th July. Thus now under this curd, lassi, cereals , rice, flour, mutton, meat and fish has become costly due to the levy of 5 per cent GST and other goods have also become costlier because there has been change in GST rates and slabs and the net effect of all this has come to influence the prices of various goods and services. There is possibility that the prices of 149 goods and services have been increased due to the hike and levying of 5 per cent GST and decision to this effect has taken place due to the decision of the meeting of GST council last month and it gave rise to the prices of a number of the goods and services and it has in fact put a big drain on the pocket of the common consumer and thus it calls for the reconsideration of the recent decision of the GST council so that the common people will heave a sigh of relief. In 143 goods, 92 per cent goods have been increased GST rates from 18 per cent to 28 per cent and this has come into effect from July 18th and it is a cause of concern to the consumers particularly to the middle income group. In the last month meeting of the GST council under the chairmanship of Finance Minister Nirmala Sitaraman there has been change in the rates of the GST slabs and new items have been levied 5 per cent GST. The government has made changes in the rates of the 143 goods. These changes in the rate slabs of the GST will cease the exemptions which government had given to people before the Lok Sabha elections of 2019,in 2017 and 2018.From the first savan Monday the consumers have experienced a big jerk because of the increase and levy of the GST and the economic condition of the common man has worsened because of the levy of the 5 per cent GST and because of the change in the slab rates of various daily used items and it has created much trouble and inconvenience to the common consumer. Because of the inflation the pocket of the common man has already loosened and the government has given a big setback to the common man because of the hike in the rates and the levying of the GST rates by 5 per cent and it is very unfortunate for the common man who is reeling in inflation. Now from 18th July the common man has received a big jerk and setback due to the decisions of the GST council of last month. The GST council meeting which has taken place on June 28-29, and its decisions have come into effect from 18th of July and the common man has been overburdened and this is cause of great and grave concern to the people and the planners as well as the government. Because of inflation the pocket of the common man is burdened already and now from 18th of July it is affecting the pocket and the life of the commoner and a big setback has been done to the consumer because of the increasing of the prices of many essentials of daily use. As such because of the decisions of the GST council of the last month the inflation has been fuelled much once again and it has started its effect from 18th July because from this date the decisions of the GST council have come into effect. Thus the prices of many goods have increased from 18th July 2022 and the government should do something to mitigate the sufferings of the consumers because of the recent decisions of the GST council headed by finance minister of the country. The meeting of the GST council has decided to increase the rates of the GST of the daily use goods and has also decided to levy GST on more goods and services and thus gave a great setback to the consumer. Thus the GST council has decided to increase the rate of GST on many items if the daily use goods which the common man is using and on many items the deduction in the rates Of GST has been withdrawn and this is a big setback to the common consumers. Now on the packed goods and packaged goods with labels excluding frozen goods, fish, curd, cheese, lassi, honey, dried Makhana, wheat and other cereals, the GST has been levied at the rate of 5 per cent with effect from July 18. The bank consumers will have to pay the rates of 18 per cent GST on checks issued and their clearance. The GST council has decided to hike GST rates on the items of daily use and this decision of the GST council has led to inflation in the country as common man is facing the brunt of the excess prices and inflation due to the hike in GST rates of various products. The GST rates have been hiked and this has led to increase in the prices of many items. The prices of coconut water, different raw material, hotel rooms have been raised to 18 per cent. However the GST has been slashed from 18 per cent to 12 per cent in case of the transport charges on the medicines and drugs transportation. The packaged and labeled goods of curd, Lassi, cheese, honey cereals like rice wheat flour purchases will attract 5 per cent GST from July and it is a big setback to the common man and the net effect of the decisions of the GST council meeting held at the close of the last month has resulted in the increase of the prices of many items of the daily use and it has given a big jerk to the poor consumers. Thus because of the GST council meeting of the last month, now curd, lassi, honey, cereals food items, mutton and meat, fish have been levied 5 per cent GST from 18th of July and thus it has fuelled inflation in the country and the common consumer is facing the brunt of the higher rates of GST and the consequent hike in the prices of the various goods and services. In short the last months decision of hiking the GST on some products and the decision of leaving GST on other goods which were hitherto exempted from GST has affected the pockets of the common man. The net effect of the hike in the GST rates on some products and levying the GST on some other packed goods has made it difficult for the common man to make his both ends meet. The government is appealed and requested to reconsider hike in the GST rates and also to rollback the decision of levying GST on some items.
(The author is a Columnist and Social Activist).