The Finance Minister Arun Jaitley on Friday briefed media about the Goods and Services Tax bill. Jaitley said that GST bill is going to be consumer friendly. Healthcare and education to be exempted.
Jaitley informed that four different rate slab for services are 5%, 12%, standard rate of 18% and luxury rate of 28%. 5% mostly comprises of transport services.
Here are the excerpts from the briefing:
# Five per cent GST to be levied on cab aggregators like Ola and Uber
# Mobile services will be charged under 18% but they will get input credit. So the tax incidence may be at present or lower.
# Six category for GST has not been finalised today including gold and precious metal.
# Telecom, financial services to attract GST of 18 per cent; 28% tax for race club, betting and cinema halls
# Financial services and telecom will come under 18%.
# We have fixed the 15th meeting of Council on 3rd of June in Delhi
# Some catagory of goods has not been decided yet
# Work contracts for uniform rate will be 12% with facility of input credit.
# AC eateries and those with liquor license to charge 18% GST; 5-star hotels to levy 28%; hotels with tariff of Rs 1K-2.5K to pay 12% rate
# Restaurants with turnover of Rs 50 lakh or below to face 5% tax under GST; non-AC restaurant at 12%
# All the services which use petroleum will be levied 5% as they can't take input credit.
# All the exempted services will continue to be exempted
# GST in relation to service sector has been adopted today completely
# Four different rate slab for services are 5%, 12%, standard rate of 18% & luxury rate of 28%. 5% mostly comprises of transport services
# GST bill is going to be consumer friendly. Healthcare and education to be exempted