On May 18, 2017 the GST Council had finalised seven GST rules and GST rates on goods (1211 items approx). Today, the GST Council has finalised the GST rates on services. The key takeaways of 14th GST Council meeting are given hereunder:
1. GST rate will be 28% for race clubs, betting and cinema halls. Transport and Financial services will be taxed at 18%.
2. Economy class air travel and rail travel will attract 5% GST rate, but the business class air travel will attract higher rate of 12%.
3. No GST will be levied on hotels charging tariff below Rs 1,000 whereas the GST rate will be 18% for hotels with tariff in the range of Rs 2,500-5,000.
4. GST rate will be 5% for Cab operators like Ola and Uber.
5. Healthcare and Education Services have been exempted from GST. Services that are currently exempt would continue to be exempted under GST.
6. The tax rates for gold, bidis and cigarettes will be decided in next meeting to be held on June 3, 2017.