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GST Rates: 4 Myths Cleared
Mariya Paliwala
12 Aug 2022 7:15 AM GMT
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...
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 "5+5=10 transactions per month are totally free when withdrawn from ATMs,'' she said.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.
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.
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.
