News Nation Logo

GST Council Hikes Tax On Caffeinated Beverages, Cuts Rates On Hotel Room Tariffs

Nirmala Sitharaman Said The GST On Caffeinated Beverages Has Been Hiked To 28 Per Cent Plus An Additional Cess Of 12 Per Cent As Against The Current Rate Of 18 Per Cent.

News Nation Bureau | Edited By : Shashikant Sharma | Updated on: 20 Sep 2019, 10:59:45 PM
Finance Minister Nirmala Sitharaman

New Delhi :

In big to boost the tourism industry, the GST Council on Friday reduced tax rates on hotel room tarrifs but doubled the tax on caffeinated beverages to 40 per cent. Addressing a press conference after the GST Council meeting, Finance Minister Nirmala Sitharaman said that the Goods and Services Tax (GST) on caffeinated beverages has been hiked to 28 per cent plus an additional cess of 12 per cent against the existing rate of 18 per cent.

There will be not tax for hotel rooms up tp Rs 1,000 per night. GST on hotels charging Rs 1,0001 to Rs 7,500 per night room tarrif would now be reduced to 12 per cent from the current 18 per cent with input tax credit, Sitharaman said.

Subsequently, the tax rate on hotel room tarrif of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent. Tax on outdoor catering has been slashed to 5 per cent from the current rate of 18 per cent.

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.

Also Read | Big Bonanza! Over Rs 1 Lakh Dussehra Bonus Announced For THIS Telangana Company

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.

(With inputs from PTI)

For all the Latest Business News, Download News Nation Android and iOS Mobile Apps.

First Published : 20 Sep 2019, 10:59:45 PM