Panaji: The all-powerful GST Council on Friday more than doubled the tax on caffeinated beverages to 40 per cent and slashed the rate on hotel room tariffs.
Briefing reporters after a meeting of the panel, Finance Minister Nirmala Sitharaman said the GST on caffeinated beverages has been hiked to 28 per cent plus additional cess of 12 per cent as against the current rate of 18 per cent.
For hotels, she announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 per cent tax as against the existing 18 per cent.
Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from the existing 28 per cent.
Also, tax on outdoor catering has been reduced to 5 per cent from existing 18 per cent with input tax credit, she said.
The GST was also cut on marine fuel to 5 per cent while the same on railway wagons, coaches, roling stock has been increased from 5 per cent to 12 per cent.
Exemption from the GST has been given to imports of specified defence goods that are not manufactured in India.
A uniform GST rate of 12 per cent will be levied on woven/non-woven polyethylene bags. The cess levied on top of the maximum 28 per cent tax rate on petrol vehicles with capacity to carry 10-13 persons has been reduced to 1 per cent and the same for diesel vehicles has been cut to 3 per cent.
The tax on almond milk has been set at 18 per cent, she said adding all rate changes would be effective from October 1.
The GST on slide fasteners (zips) has been reduced to 12 per cent from 18 per cent earlier.
Also, the tax on diamond job work has been reduced to 1.5 per cent from 5 per cent earlier. The same on supply of machine job cut to 12 per cent from 18 per cent.
Also read: Nirmala Sitharaman cuts corporate tax: Why does good economics wait for crisis and panic?
I am quite surprised to see that ThePrint is allowing users to comment today. Generally it does not.May be it is going to moderate it out
I am surprised at this reporting . When other media are mentioning biggest single day gain of Sense in ten years, positive buoyancy in Auto sector, Equity market , Hotels etc This news here highlighted rise in GST for caffeinated drinks, while not providing due focuss on rate cuts for Room rents in hotels from INR 1000 to 7500 , Corporate Tax cuts …Abolition of Surcharge .. cuts on defense purchase for items not manufactured in India, Exemption of share buy back tax … In nut shell the industry is buoyant and affirmative with expectations of job and employment generation . This is all the more important given the challenge on revenue. Notable here urgent requirements for defense exist that can’t be postponed to tackle adventurism from any adversary.
My only humble expectation these benefits would incentivise our corporate sector to commit much more on inhouse R&D. This to propel India as hub of Contract R&D and our industry becones Technology Donors
not Tech Receivers, our future progeny can be working and be owning companies like Raytheon Lockheed Boeing Mitsubishi Toshiba . Vandemataram
This tax cut, a 3rd mini budget, is essentially an ice cream for the top 0.7% of the richest population in India. When they too find out it did not work for them either because of global situation, the 4th budget will be available by March of next year.