2019 GST Rates for Goods & Services In the recent GST council meeting which was held in Goa on 20th September 2019, where the council has decided to lower the taxes on Hotel service, outdoor catering, semi-precious stones and vehicles with a length up to 4000mm carrying 10 to 13 passengers. According to the finance minister Nirmala Sitharaman, the reason for reducing GST rates on the following products & services is to promote hospitality and tourism in India. In the given article you will know about the new GST tax slabs in India which is set by the GST council. What are the effects of new GST rates on the Hotel Services? The GST council updated GST tax rates for hotels are as follows. ● ●
Hotels with room rates up to INR 1,001 do not charge any GST from the customers. Hotel rooms with rates of Rs 1,001-7,500, charges a tax of 12%, and those who are offering rooms at more than Rs 7,500 per night, charges 18% GST.
The new GST rates not only reduced the room rates, but also re-organize the hotel GST tax slabs in India. Earlier, hotel room rates are 12% for a room of Rs 1,001-2,500 whereas Rs 2,500-7,500 interested an 18% GST rate. The cut of GST rates on hotel services is to help in achieving the targeted development in the Indian tourism industry. Raised GST Taxes Till now, you are aware of the reduced GST rates, but the GST council has also increased taxes on some products & services like caffeinated beverages to 28% and 12% on railway coaches. The reason for the increased GST on railway coaches is due to the demand of railway manufacturers, because they aren’t able to set off input tax credits. Under the new GST rates, all biscuits were brought under the 18% GST tax slab, to force the companies to increase prices that help in affecting their sales. The government has also increased taxes on woven and non-woven polythene bags to 18%. Benefits of the new GST rates With lower GST rates on the hotel services, it can benefit India’s tourism industry which is facing a loss in the previous years. Now with the new GST rates, there’s no GST on your hotel accommodation to a minimum value of ₹1,000 or less per day. Another benefit of the new GST tax slabs in India is that the government doesn’t levy any GST on group insurance schemes for paramilitary forces. Zero GST on jewelry exports from India, the tax rate on cut and polished semi-precious stones cut to 0.25% from 3%. Also, Job work services related to diamonds now attract a lower tax rate of 1.5%.
You have to pay a lower 12% GST on 1200 cc petrol and 1500 cc diesel vehicles with a carrying capacity of 12 to 13 passengers. The GST rates are 12% for the machine job works in the engineering industry, which is lower from the previous 18%. The meeting was not all about rate cuts on the Goods & services but the council increase tax on caffeinated beverages like Coca-Cola, Peps, and others to increase their sales.