News: GST Council finalizes GST rates and exemptions for services

GST Council finalised the various GST rate for services which are 0%, 5%, 12%, 18% and 28%. some of key highlights of the schedule of rates announced by the Council are as follows:

  • education and healthcare services will be exempt from GST
  • tax rate will be 18% for services such as banking, insurance, financial services, information technology services, telecom services.
  • non-AC restaurants and restaurants that do not serve liquor will be liable to GST at 12% whereas services of restaurants that either have air-conditioning or serve liquor will be liable to GST at 18%.
  • Hotel rooms with tariff of less than 1000 will be exempt.
  • Hotel rooms with tariff between 1000-2500 will be taxed at 12%
  • Hotel rooms with tariff between 2500 -5000 will be taxed at 18%
  • movie tickets, racing, betting on racing and casinos will be liable to GST at 28%
  • rail travel in sleeper class or in metro and religious travel will be exempt from GST whereas rail travel in AC and railway freight will be liable to GST at 5%
  • air-travel in economy class will be liable to GST at 5% whereas business class travel will be liable to GST at 12%
  • cab aggregators will be liable to GST at 5%
  • works contract services will be liable to GST at 12%
  • e-commerce companies will have to collect GST at 1% from payments to be made to the sellers in respect of transactions carried out through their platform