The all-powerful GST Council on Friday more than doubled the tax on caffeinated beverages to 40 per cent and slashed the rate on hotel room tariffs.
For hotels, she announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 per cent tax as against the existing 18 per cent. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent. Also, tax on outdoor catering has been reduced to 5 per cent from existing 18 per cent with input tax credit, she said. The GST was also cut on marine fuel to 5 per cent while the same on railway wagons, coaches, rolling stock has been increased from 5 per cent to 12 per cent. Exemption from the GST has been given to imports of specified defence goods that are not manufactured in India.
A uniform GST rate of 12 per cent will be levied on woven/non-woven polyethylene bags. The cess levied on top of the maximum 28 per cent tax rate on petrol vehicles with capacity to carry 10-13 persons has been reduced to 1 per cent and the same for diesel vehicles has been cut to 3 per cent.
The tax on almond milk has been set at 18 per cent, she said adding all rate changes would be effective from October 1. The GST on slide fasteners (zips) has been reduced to 12 per cent from 18 per cent earlier. Also, the tax on diamond job work has been reduced to 1.5 per cent from 5 per cent earlier. The same on supply of machine job cut to 12 per cent from 18 per cent.
- The exemption on specified imported defence goods that have not been manufactured indigenously has been extended to 2024. Also, the supply of goods and services to FIFA and other specified persons have also been exempted for the U17 Women’s World Cup, which is to take place in India
- GST on supply of machine job has been cut to 12 per cent, down from 18 per cent The Council has exempted
- Platinum imported for re-export as jewellery from GST
- The GST on jobworks for diamonds has been cut to 1.5 per cent, up from 5 per cent
- The rate on hotel rooms with tariff ranging from Rs 1,000 to Rs 7,500 has been cut to 12 per cent, down from 18 per cent
- The rate on hotel rooms with tariff over Rs 1,000 will attract zero per cent GST
- The rate on hotel rooms with tariff over Rs 7,500 has been cut to 18 per cent, down from 28 per cent
- The GST cess on 10-13 seater passenger vehicles has been cut to one to three per cent for petrol and diesel vehicles
- Aerated drinks manufacturers excluded from compensation scheme
- A uniform GST rate of 12 per cent on polypropylene and polyethylene, woven and non-woven, whether on not laminated, for packing. GST on railway wagons, and coaches increased to 12 per cent, up from 5 per cent, and the rate on dried tamarind cut from 5% to nil
- On GST rate reductions, slide fasterner has been reduced from 18 per cent to 12 per cent, marine fuel from 18 per cent to 5 per cent, and from 3 per cent to 0.25 per cent on semi precious stones