GST RATES FIXED BY THE GST COUNCIL - ALL YOU NEED TO KNOW
Essential for All Upcoming Competitive Exams
Introduction:
- The Goods and Services Tax (GST) Council on 18th May, 2017 agreed on the fitment of almost all commodities in the various tax slabs under the new indirect regime to be rolled out on 1st July, 2017.
- Milk, Jiggery and Cereals (unpacked and unbranded) will be exempt from any GST, while tea, sugar, coffee (except instant) and edible oil will be taxed at 5%. Common use items such as toothpaste, soap, and hair oil, which currently attract a tax rate of 22-24%, will be taxed at 18%. Coal, which is currently taxed at 11.7%, will attract a GST rate of 5%.
- Consumer durables will come under the 28% tax bracket, down from the current 30-32% rate. Capital goods and industrial intermediaries will be taxed at 18%.
- Small petrol and diesel cars will be taxed at 28% with small petrol cars attracting a cess of 1% and small diesel cars 3%. Luxury cars will attract a 15% cess in additional to 28% GST. 350cc bikes will attract at 3%. However, the official said there would be no additional tax incidence on these goods from their current rate of taxation.
- The GST Council on 19th May, 2017 finalised tax rates for all services, except lotteries. Those services already exempted from tax, such as healthcare and education, will continue to enjoy the concession.
Key
Services and their new GST rates
|
|
AC Train Travel
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5%
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AC Restaurants
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18%
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Business Class Air Travel
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12%
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Economy Class Air Travel
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5%
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5-star Hotels
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28%
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Non-AC Restaurants
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12%
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Cinema/ Gambling/ Betting
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28%
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Transport Services
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5%
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Work Contract
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12%
|
Important Points:
- Hotels with tariff of Rs. 1,000 to Rs. 2,000 will pay 12% GST.
- Hotels and lodges charging daily tariff up to Rs. 1,000 will be exempt from GST.
- Financial Services and Telecom Services will be taxed at a standard rate of 18%.
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