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GST for hotel lodging reduced!
Posted on: 21/Sep/2019 2:12:52 PM
The GST (Goods and Services Tax) for hotel lodging has been reduced. This measure has been taken with the main objective of facilitating growth in tourism and creation of more job opportunities in the related fields.
This decision was taken during the 37th GST Council Meeting conducted on Friday (20th September) presided by the central finance minister Nirmala Seetharaman.
The GST for caffeine-added beverages has been doubled!
However, no announcement was made on the eagerly expected reduction of GST on automobile spare parts! As there is a huge recession currently experience in the auto industry, it was very eagerly expected that focus would be given to the auto industry related GST issues.
GST has been revised on 20 items and 12 services in the above meeting.
The finance minister had a session with press after the meeting. She shared:
‘The GST for caffeine-added beverages has been doubled from the present 18% to 28%. Additional compensation tax of 12% is also levied! With this, GST for the caffeine-added beverages has been increased to match the GST for the other bottled drinks.
With an objective to increase the growth of job opportunities in the hotel and tourism industry, the GST on hotel lodging is reduced. Accordingly, there will be no HST for lodging rates up to Rs. 1000 per day. In case the lodging rate per night is from Rs. 1001 to Rs. 7500, GST is reduced from the current 18% to 12%. For lodging charges above Rs. 7500 per day/night, GST is reduced from the current 28% to 18%.
- The GST on zips used in clothing and bag/box-making is reduced from current 18% to 12%.
- The GSt on wet grinder is reduced from the current 12% to 5%.
- The GST for fuel for ships/boats is reduced from the current 18% to 5 %.
- The GST presently levied on try tamarind used for the preparation of food items is withdrawn.
- The GST, presently levied at 5% on cups and plates made from the plant leaves and tree fronds, is withdrawn.
- The GST on services related to diamond polishing/shaping contract jobs is reduced.
- Similarly, the GST levied on catering service for making food items outside on contract is also reduced.
- A GST of 5% is being levied on special items used in purifying oil, natural gas, etc. If army equipment imported from abroad (not being manufactured in India), no GST would be levied on these equipment.
- There would be no GST on items procured for the projects undertaken by the Food and Agricultural Council.
- GST is exempteded till a specified period for food items prepared using fish meant for the pet animals and also for the small equipment used in farming/agriculture.
- The above-mentioned GST revisions will be implemented from 1st October.
- Further, a decision was taken during the meeting to make Aadhar cards mandatory for paying GST as well as claiming a refund of GST.
- The GST on train goods boxes and passengers’ boxes have been increased from the current 5% to 12%. GST for almond milk has been increased to 18%.
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