GST Rates Finalised, Luxury Items To Cost More
New Delhi: Tax rates for services under the Goods and Service Tax (GST) regime were finalised on Friday by the GST Council. GST regime is scheduled to be rolled out from July 1.
Both goods and services fall under four rates- 5, 12, 18 and 28 percent. While Healthcare and education will be exempted from GST the tax bracket for gold was not finalised.
While milk, fruits and vegetables, grain and cereals have been exempted from the tax, sugar, tea, coffee and edible oil will be taxed the lowest rate of 5 percent.
Personal-care items will be taxed at 28 percent; hair oil, soaps and toothpaste, will attract an 18 percent levy. Cigarettes will attract a tax of 5 percent on top of the peak GST rate of 28 percent.
Vehicles already attract different levies, which add up to 28 percent — the peak GST rate fixed for the sector. Appliances such as air-conditioners, refrigerators and washing machines will attract the peak rate, which is slightly higher than the existing tax slab.
Addressing the media, Finance Minister Arun Jaitley said, restaurants with Rs. 50 lakh or below will face 5 percent tax, while the non-AC restaurant will face 12 percent tax. AC restaurants and those with a liquor license will be charged 18 percent and 5- star hotels will be levied 28 percent GST.
Telecom and financial services will attract GST of 18 percent and 28 percent tax will be charged for race club, betting and cinema halls.
Religious travel including Haj Yatra, travelling on the metro, a local train will be exempted from GST.
The council will meet again on June 3.