After the meeting of the GST Council, many household items became expensive

From July 18, over two dozen goods and services will see an increase in GST tax, from non-branded food items, curd and buttermilk to low-cost hotels, checks and maps. The Goods and Services Tax (GST) Council took this decision in a two-day marathon meeting that concluded on Wednesday.

Services such as kitchen utensils, LED lights, agricultural machinery, solar water systems as well as works contracts for roads, irrigation projects, hospitals and educational institutions will now be charged at 18 per cent instead of the earlier rate of 12 per cent.

Following Finance Minister Nirmala Sitharaman's announcements, analysts said higher taxes would put an additional burden on households that are already facing a hike in food and energy prices.Responding to concerns that a change in the GST rate could further exacerbate the prevailing high inflation, Finance Minister Sitharaman said inflation was everyone's concern and the Council's decisions were not taken separately, she said, adding that "the elected representative who serves as the Council's part, they are also inflation conscious." He further said that there was no opposition from any state on the change in rates, and "the fitment committee's suggestions before the GST Council were thoroughly considered and more or less accepted by all."