The Goods and Services Tax (GST) council meeting in Goa concluded hours after after the government slashed corporate taxes, aiming to reviving private investment and lifting growth from a six-year low that has caused job losses and fueled discontent in the countryside.
Domestic companies will pay 22 per cent tax on their income from April 1, 2019, versus 30 per cent previously, Finance Minister Nirmala Sitharaman said Friday. The effective rate, including all additional levies, will be 25.2% and applicable on companies that aren’t availing any incentives or exemptions.
Sitharaman’s announcements and the GST council’s meeting comes at a time when India’s annual economic growth fell to a 25-quarter low of 5% in April-June period.
Here are live updates on the latest GST decisions and reactions of the latest round of stimulus.
- GST on hotel room rent rationalised
- Nil GST rate on hotel room rent upto Rs 1k : Hotel rooms with Rs 1,000 or less tariff will have nil GST. From Rs 1,001 to Rs 7,500 will have 12% GST and above Rs 7501 will be 18%
- GST rate of 12% on hotel room rent of Rs 1,000-7,500
- 18% GST rate on hotel room rents of above Rs 7,500
- GST rate on caffeinated beverages raised to 28% along with 12% compensatory cess
- High-capacity passenger vehicles to attract lower compensation cess
- Aerated drinks no longer under compensation scheme
- Exemption for specified defence items from GST/IGST
- Revised GST rates to come into effect on October 1
- GST rate on railway coaches : GST rate on railway coaches and wagons raised to 12% from 5%
- Jewellery exports to now attract zero GST
- Polyethylene bags: Uniform GST rate of 12% for woven/non-woven polyethylene bags
- GST compensation cess on petrol, diesel vehicles : Compensation cess on petrol vehicles with 10-13 person capacity reduced to 1%, reports ET Now TV channel. Compensation cess on diesel vehicles with 10-13 person capacity reduced to 3%