GST council finalises tax on services; exempts edu, healthcare


Srinagar, May 19 (PTI): The all-powerful GST Council today finalised tax rates for services under the Goods and Service Tax (GST) regime, scheduled to kick-in from July 1.

Healthcare and education would be exempt from GST.

Kerala Finance Minister Thomas Issac said there will be four rates for services at 5, 12, 18 and 28 per cent, similar to tax slabs for goods. The tax rate on gold has not been finalised yet, he said, adding that the Council will meet again on June 3.

Restaurants with turnover of Rs 50 lakh or below to face 5% tax under GST; non-AC restaurant at 12%, AC restaurants and those with liquor licence to charge 18% GST; 5-star hotels to levy 28%; hotels with tariff of Rs 1,000-2,500 to pay 12% rate. Telecom, financial services to attract GST of 18 per cent; 28% tax for race club, betting and cinema halls.

  

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Comment on this article

  • NN, Mangalore

    Sat, May 20 2017

    Tax rates for the restaurants should be uniform. A/C and non-A/C creates lot of confusion. Restaurants may install ACs, but may not switch on because of power shortage and yet, may charge higher rate of tax. AC was a luxury sometimes back, but now it is a necessity. In 70's we were required to obtain a license to own a transistor radio. Now things have changed.

    DisAgree Agree [3] Reply Report Abuse

  • Vincent Rodrigues, Katapadi/Frazer Town,Bangaluru

    Fri, May 19 2017

    All welcome it if the taxation is people friendly

    DisAgree [1] Agree [2] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, May 19 2017

    15% Service tax can now become 28% on some items.
    This time Rs.15 Lacs 100% ...

    DisAgree [5] Agree [12] Reply Report Abuse


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