Five-star hotel's GST drops 10 percent: 40 percent on caffeinated beverages

(PTI) Panaji, Ta. September 20, 2019, Friday

The GST council on Friday reduced the tax on caffeinated drinks by almost double to 40% and reduced the tariff on hotel room tariffs. After the meeting of the GST conference, Finance Minister Nirmala Sitharaman said that the GST on caffeinated beverages has been increased from 18% to 28% from the current one and it will also have to increase the 12% cess.

GST gives big concession to hotels at Rs. GST will be zero for less than 1000 fares while Rs. 1,001 to Rs. 1200 GST will be applicable instead of the current 18% on the rent of 7,500.

Likewise, the hotel is paying Rs. The current 28 per cent GST on rent of over 7,500 has been reduced to 18 per cent. The 37th meeting of the Highly Authorized GST Council was held at Panaji on Friday amid demand for a cut in GST rates from various industries. After the meeting, Nirmala told Sitaraman that the GST rate on the slide fastener was reduced from 18 percent to 12 percent.

GST has been reduced from 12 per cent to 5 per cent on marine fuel, from 5 per cent to 12 per cent on stone grinder and 5 per cent to zero per cent on dry pebble. Apart from this, certain items of defense sector manufactured from outside India are exempted from GST. Output tax on outdoor catering has been reduced from 18% to 5% with current tax credit. The new rates will apply from October 1st.

How much relief was given to the GST Council?

* Increased time limit for applying simple GST returns.

* Free small businesses from filing annual GST returns.

* Exemption from GST return on annual turnover of Rs two crore.

* No GST return will be filed for the year 2018-19.

* Rs. 18% tax instead of 28% on hotel rentals above 7,500.

* Rs. 1,001 to Rs. 12% tax instead of 18 on hotels with rent up to 7,500.

* Rs. Zero GST on hotels with less than 1,000 rentals.

* GST on outdoor catering has been reduced from 18 percent to 5 percent.

* GST on diamond job-work has been reduced from 5% to 1.5%.

* GST on other job work has been reduced from 18 percent to 12 percent.

* Compensation cess on petrol vehicles having capacity of 10-13 people was reduced by 1 percent while on diesel vehicles the concentration was reduced by 3 percent.

* 12 percent GST on polythene bags.

* It was decided to reduce GST on polishing and cutting of precious stones.

* Exemption in GST on warehousing. - GST zeroed on cup-plate made of flowers.

* GSTR-9 will be 'simplified'. - No relief on the GSTR-9C.

* Rs. Units with annual turnover of over 20 million will have to pay GSTR 9.

* GST exemption on certain defense goods not manufactured in India.

* GST on railway wagons and coaches increased by 5 percent to 12 percent.

* Tax reduction proposal on biscuits rejected.