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GST Council meet in Goa: Hotel room tariffs to get cheaper, colas get costlier

The Centre ON Friday unleashed a huge fiscal stimulus by announcing big cuts in corporate tax rates to push India's stuttering economy, a move that also saw a slew of changes in the GST rate of certain commodities. It ranges from increasing rates on caffeinated drinks to reducing tariff on hotel rooms with an aim to simplify and rationalise the taxation.  
Last Updated 20 September 2019, 16:56 IST
16:3220 Sep 2019

Other things that come under the new GST rate

The GST on railway wagons,coaches wereincreased to 12 perc ent, up from 5 per cent.

The GSTon 10-13 seater passenger vehicles has been reducedto 1 per cent from the earlier 3 per cent.

The Council also decided to make annual return optional for small taxpayers below the annual threshold of Rs 2 crore for FY18 and FY19.

FMNirmala Sitharaman also said that the GST Council exempted silver imported for re-export as jewelry from GST. Also, the tax rate on the supply of machine job cut to 12 per cent from 18 per cent.

16:2720 Sep 2019

The list of what gets costlier, what gets cheaper

The GST Council on Friday announced somechanges pertaining tocertain commodities. It ranges fromincreasing rates on caffeinated drinks to reducing tariff on hotel rooms with an aim to simplify and rationalise the taxation.

The rates oncoffee washiked to 28 per cent from the previous 18 per cent, while the rates on hotel rooms with tariff above Rs 7,500 have been cut to 18 percent, down from 28 percent. FMNirmala Sitharaman said that the Council also approved nil GST rates on hotels with tariff up to Rs 1,000.

The GST rate on diamonds was reducedto 1.5 per cent from the earlier 5 per cent. The GST onalmond milkwasset at 18 per cent.

A uniform GST rate of 12 percent was approved on polypropylene and polyethylene (woven and non-woven) whether or not laminated for packing.

15:2820 Sep 2019

Tax rates now comparable to the US: Piyush Goyal

Commerce minister Piyush Goyal Friday said he "hopes" the tax relief measures announced by the government for the corporates will give the necessary fillip to growth that has been sputtering for long.

The measures also get our tax rates comparable to those in the US and in South Asian economies, if one were to include the exemptions thrown in, Goyal said, adding these will help push investments up.

With an eye to push growth, which has slipped to a six-year low in the June quarter--which is even below that of Pakistan's 5.4 percent--finance minister Nirmala Sitharaman earlier in the day announced a raft of changes in direct taxes, including a 10 percentage points cut in corporation taxes to 25.17.

The measures, which come a day after Reserve Bank governor Shaktikanta Das had warned against any fiscal measures to spur growth saying the government has little fiscal space to do so, will entail a revenue sacrifice of Rs 1.45 lakh crore to the exchequer this year.

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15:2420 Sep 2019

The Centre Friday unleashed a huge fiscal stimulus by announcing big cuts in corporate tax rates to push India's stuttering economy, a move that can boost investment by companies and bring down cost of goods for consumers, thereby giving a leg-up to the demand slump.

Announcing the steps that caught the street by surprise, Finance Minister Nirmala Sitharaman said the basic corporate tax rate will be cut to 22% from the current 30% for all existing domestic firms and to 15% from 25% for the those being set up after October 1. The effective tax rate for domestic companies will, however, be 25.17% inclusive of all surcharges and cess.

The step elicited immediate cheer from investors and the 30-share BSE Sensex saw a jump of over 1,000 points minutes after the announcement. The rupee too traded at the day's high of 71.01 per dollar immediately after the announcement.

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08:4620 Sep 2019

(Published 20 September 2019, 03:54 IST)

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