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No GST on cash withdrawals from banks, says Finance Minister: 5 points



No GST on withdrawing money from banks: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said in Rajya Sabha that there is no GST on cash withdrawals from banks.

  1. Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday that there is no GST on cash withdrawals from banks and there is only GST on banks that buy check books from printers.

  2. The Finance Minister said that in the GST Council, all the states agreed to a proposal to levy 5 per cent GST on pre-packaged, labeled food items and not a single person spoke against that proposal. He said that there is no GST on hospital beds or ICU (Intensive Care Unit) and the tax is only on rooms with rent of Rs 5000 per day.

  3. Ms Sitharaman said consumption of any food item by the poor is not taxed, explaining that the 5 per cent GST was only on pre-packaged, labeled items and not on items sold in loose quantities. Every state has taxed some or the other food items like cereals, pulses, curd, lassi and buttermilk, the finance minister said while defending the levy of GST on food items. He said there is no GST on cremation grounds, and tax only on construction of new crematoriums.

  4. The minister, while replying to a debate on inflation in the Rajya Sabha, said that we are at 7 per cent inflation rate now because of some efforts by the RBI and the government, referring to runaway inflation in other countries. We are not saying that there is no inflation and no one is denying price hike, he said.

  5. Responding to the debate on price hike, Ms Sitharaman said the government has taken a targeted approach based on grassroots inputs to tackle retail inflation, which is around 7 per cent. He said that the Indian economy is much better than the peer group of the country and some developed economies.