The Goods and Services Tax Council broadly agreed on 4 tax brackets for services (5%, 12%, 18% and 28%), though they are yet to decide on a tax bracket for gold.
Finance Minister Arun Jaitley, at a presser in Srinagar, listed out the details, which were:
1) All services have been fitted into four different rates, which are 5%, 12%, the standard 18% and the luxury rate of 28%
2) Transport services (Railways, air transport) will be under the 5% category because their main input is petroleum, which is outside GST ambit.
3) Service tax on non-AC hotels will 12%, on AC hotels that serve liquor will be 18%. Higher tax rate for luxury hotels.
4) Hotels and lodges with tariff below Rs 1,000 will be exempt. Those with Rs 2,500-5,000 will be 18%. Luxury hotels will face tax of 28%.
5) 28% tax slab on 5-star hotels, race club betting, cinema.
6) 18% tax slab for telecom, financial services
Healthcare and education have been exempted from the service list. Most service structures will remain as is, said sources. This implies services will become cheaper in some segments.
Source: Economic Times
