GST Meet

GST Council Meeting Live Updates: Tax Relief For Different Sectors

Several decisions have been taken in GST council meeting in order to promote tourism,” Nirmala Sitharaman stated at time announcing rate cuts down on hotel bills

The GST Council meeting on 27th, Sept announced reduction in tax rates for the hotel industry, taking the entire sector out of the 28% tax rate slab, the highest under the GST regime.

The all-powerful panel also announced tax relief on outdoor catering, move down the GST rate for the service to 5% from the earlier 18%. There was no joy for the ailing automobile sector, though, which has been clamoring for a rate cut in face of its worst sales performance in the past two decades.

In a meeting chaired by FM Nirmala Sitharaman, the GST Council decided to increase taxes on caffeinated drinks – which includes energy drinks and cold drinks to 28 percent from 18 percent.

Govt also introduced an additional 12 percent cess on beverages.

During a press meet after the GST Council meet, FM Sitharaman said that the ministerial groups under the panel should meet more often for prompt resolution of rate issues.

What are the Benefits after new rules under GST Meet:

  1. Supply of goods and services to FIFA and other specified persons for Under 17 Women’s World Cup in India exempted from GST.
  • Insurance provided to Central Armed Paramilitary Forces to be exempt from GST.
  • Prospectively, warehousing of certain agricultural products has been exempted from GST.
  • Hotels with room tariff of Rs 1000 or less will attract nil GST. Those with Rs 1,000- Rs 7,500 will attract 12 per cent GST. Hotels with a tariff of Rs 7,500 and above will be taxed at 18 per cent.
  • Aerated drinks manufacturers no longer part of composition scheme, says the Finance minister.
  • Composition cess on petrol vehicles with a capacity of 10-13 persons reduced to 1 per cent. The same for diesel vehicles with similar capacity will be 3 per cent.
  • Uniform rate of 12 per cent for woven and non-woven polyethene bags.
  • supply of silver, platinum from specified agencies to be exempt from GST, says the minister.
  • Defence goods not being manufactured indigenously has been exempted from GST/IGST, announces Sitharaman.

The GST Council has decided to increase the tax rate on caffeinated drinks. It increases GST rates on such beverages from 18 per cent to 28 per cent and imposes an additional cess of 12 per cent.

The states have been seeking an deadline extension of GST cess till 2022 in the face of dropping GST revenue collection in the wake of an economic slowdown.

The recommendations of the GST Council will be implemented from October 1, 2019.

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