GST Council removes tax exemptions on some items

Packaged curd, lassi, buttermilk, foodgrains, cereals, honey, papad and a host of unbranded food items besides hotel rooms with a tariff below 1,000 per night and hospital rooms with a daily tariff of over 5,000 are set to become taxable with the Goods and Services Tax (GST) Council accepting the recommendations of a panel of state finance ministers.

The date of implementation of these recommendations has not been decided, people familiar with the deliberations said. These items are currently exempt from GST. The council also accepted the recommendations of another ministerial panel on stricter scrutiny and verification of high-risk taxpayers.