Unbranded pre-packaged food items and hotels with room rent less than Rs 1,000 will be brought under the Goods and Services Tax (GST) net.
The two-day GST Council meeting at Chandigarh took the decision on Wednesday.
The council at its 47th meeting has decided to bring pre-packaged and labelled food items such as wheat flour, paneer, puffed rice and other items under the GST net in order to avoid disputes.
Currently, while branded cereals attract GST the non-branded do not.
The Council will also be removing the exemption given to hotels with room tariffs of less than Rs 1,000 per day. It has also decided to correct the inverted duty structure for several items like LED lamps, edible oils, solar water heaters and others.
The GST on electronic waste has also been increased from 5 per cent to 18 per cent.