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Friday, May 19, 2017

GST - GST Council finalised four tax rates of 5, 12, 18 and 28% to apply on services including telecom, insurance, hotels and restaurants Friday May 19,2017

India fixed four categories of taxes for services such as transport, entertainment and banking services on Friday, taking a step closer to meeting a July 1 deadline for the rollout of the country’s biggest tax reform.
Eating out at small restaurants and dhabas, hiring a cab or staying in a non-5 star hotel will be cheaper under the new Goods and Services Tax regime. Education, health and public transport will be exempt.
The decisions came at the end of a two-day meeting of the GST Council headed by Union finance Arun Jaitley and which also includes his counterparts from states. The council has already fixed GST rates for household items and manufactured goods.
Education0%No change
Health0%No change
Cabs like Ola, Uber5%Lower
Metro, local train0%No change
Non-AC train0%No change
AC train5%Lower
Air economy class5%Lower
Air business class10%Lower
Entertainment and leisure
Dhabas (With annual sales under Rs50 lakh)5%Lower
Non-AC restaurant12%Lower
AC restaurants, bars18%Lower
5-star hotels28%Higher
Hotels with tariff
Up to Rs 1,000/day0%Lower
Rs 1,000-2,000/day12%Lower
Rs 2,000-5,000/day18%Higher
Above Rs 5,000/day28%Higher
Financial services18%Higher

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