The 37th GST council meeting which was held in goa, where the Finance Minister Nirmala Sitharaman along with the other committee member has decided to lower the taxes on some products & services. The main reason behind the changes in GST tax slabs is to promote the hospitality & tourism industry. With the new GST tax rate in India, a massive reduction is observed in hotel & catering services. Know about the effects of new GST rates on products & services.
Lower GST rate on product & services Current GST tax rates on your everyday usable products like sanitary napkins, Saal leaves and fortified milk, fruits, vegetables, bread, salt, bindi, curd, sindoor, natural honey, bangles, handloom, besan, flour, eggs, stamps, printed books, judicial papers, newspapers are zero to make them easily accessible to the people. GST tax rate is zero on hotel and lodge rooms up to INR 1000 & below. Otherwise, for hotel rooms which are above INR 1001 to 7,500 charges a 5% GST or 18% GST on the rooms above INR 7,500. The 37th GST council meeting's main topic is to promote the hospitality and tourism industry and by reducing the hotel accommodation GST rates it helped in supporting it. Increased GST tax rates on selected Products & services With the new GST tax rate in India, there is an increase of tax in some products & services such as caffeinated beverages levied a tax up to 28%. Some services like Business class air tickets attract a tax up to 12% under new GST. The GST tax slabs also include movie tickets that priced under ₹100 and charge a 12% GST. The catering services also charged with 18% GST rates if they supply services to the hotel & lodges whose rates are above INR 7,500. Railway coaches GST charges are also raised to 7% previous GST tax rate on railway coaches is 5% and now with the changes in the GST tax rates, it is 12%. What are the advantages of the current GST Tax rates in India The changed GST tax slabs aim is to increase the GDP rate of India and also to promote tourism, new GST tax rates in India is set to affect these issues.
The council not only reduced GST rates but also imposed high GST on some products and services like caffeinated beverages, railway coaches and electronic machines like vacuum cleaner, washing machine, refrigerator and more. All in all the new GST tax rates in India is beneficial for the country's financial status.
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Anika Sharma
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