GST for services finalised: Education, healthcare to be exempted; telecom, financial services to attract 18% tax
New Delhi: The all-powerful GST Council on Friday finalised tax rates for services under the Goods and Service Tax (GST) administration which are planned to be taken off from July 1.
There will be four rates for services at 5, 12, 18 and 28 percent, like duty sections for merchandise. Healthcare and education will be exempted from GST.
Tending to the Media after 2-day GST Council meeting in Srinagar, finance minister Arun Jaitley stated, "Eateries with turnover of Rs 50 lakh or underneath will confront 5% tax under GST while non-AC restaurant will confront 12 % tax."
Furthermore, AC restaurant and those with liquor licence will be charged 18% GST and 5-star hotels will be exacted 28 percent. In the mean time inns with duty of Rs 1,000-2,500 should pay 12 % rate, he included.
5% GST will be imposed on taxicab aggregrators like Ola and Uber, said Jaitley.
Telecom and financial services will draw in GST of 18 % while 28% assessment will be charged for race club, betting and cinema halls.
The assessment rate on gold has not been finished yet. The GST Council will meet again on June 3.
The GST rates for everything except six things were finished at the principal day of the two-day meeting of the GST Council, headed by Union Finance Minister Arun Jaitley and involving state representatives.
Costs of foodgrains, particularly wheat and rice, will descend as they will be absolved from the GST. Presently, a few states exact Value Added Tax (VAT) on them.
"We have settled assessment rates for a larger part of things and additionally the absolved rundown (at today's meeting)," Jaitley told columnists.
Out of the 1,211 things, the GST rate for everything except six was settled on the principal day, he said.
"Rates have been finalised for the rest," he stated, including GST for bundled nourishment things is to be finished later.
"(With) the standard rate things of 12.5 % and 15 %, in addition to the falling impact of neighborhood assessments, the expense rate was going up to 30-31 %. These 30-31 % charges... Have all been conveyed down to 28 %.
"Of these, some are things to be utilized by basic man cleanser, oil - that has been conveyed down to 18 percent. So there will be a significant diminishment to the extent those things are concerned. We have remembered one criteria that the general effect is not swelling, in reality it cuts down the costs," Jaitley included.
Revenue Secretary Hasmukh Adhia said 7 percent of the things fall under the absolved rundown while 14 % have been placed in the least duty section of 5 %. Another 17 % things are in 12 % assess section, 43 % in 18 % charge piece and just 19 % of merchandise fall in the top expense section of 28 %.
Upwards of 81 % of the things will pull in 18 % or less GST.