May 19 , Friday : The GST Council on Friday has come up with a finalized tax rates for services under the Goods and Services Tax (GST) which is all set to roll out from July 1 this year across the country.
After the two days meeting of the council in Srinagar, Finance Minister Arun Jaitey briefed media in which he made major announcements on GST regime.
Under the new tax reforms , there is a four-tier tax structure, of 5, 12, 18, and 28 percent that will be followed. The Healthcare , third tier railway travel and education services has been exempted from this.
Below we have enlisted new finalised GST rates which all you need to know.
- Transport services will be taxed at 5%. This rate will apply to cab companies like Ola and Uber as well as those who presently pay 6% tax.
- AC railway tickets will attract 5 % tax.
- Travelling in metro, local train and religious tour will be exempted.
- Economy class air travel will be charged 5%.
- Business class travel by airlines will come under 12 per cent tax slab.
- Hotels and restaurants will be levied different tax rates, depending on their services as for Non AC -12% , AC – 18%, five star – 28% GST will be charged on food bill.
- Hotels and lodges levying per day tariff of Rs 1,000 would be exempted from GST.
- Hotels charging between of Rs 1,000 to 2,000 per day will fall under 12% slab while those with tariff of Rs 2,500 to Rs 5,000 would charge 18%.
- Five Star hotels will attract 28%.
- No tax on lottery.
- Entertainment tax will be merged with service tax.
- Telecom and financial services will be taxed at a standard rate of 18%. Transport services will be taxed at 5%.
- Most of the food items exempted from GST including wheat, rice , milk and much more.
- Tax for gold and costier metal will discussed in next GST meeting which is scheduled on June 3.