Nirmala Sitharaman, the Finance Minister of India, on the 20th of September, conducted a Goods and Services Tax (GST) Council meeting and announced the new GST rates on several items in India.
After the meeting, Ms. Sithraman, accompanied by several finance ministers, conducted a press conference in Panaji, Goa. During the press conference, she announced the reduction of GST rates on a few items.
The major highlights of the press conference are:
- A GST rate of 12 % will be imposed on woven/non woven polyethene bags.
- Reduction of 3.5 % GST in the diamond industry.
- GST on polished semi precious jewellery would be cut from 3 % to 0.25 %.
- Tax on hotel rooms reduced to 12 % for people paying Rs. 1,000 to Rs. 7,500 per night, whereas those paying more than Rs. 7,500 per night will have to pay tax worth 18 %.
- The GST Council also hiked the GST on a few caffeinated beverages. The GST was hiked from 18 % to 28 %, excluding an additional cess of 12%.
- The Council reduced tax rates for outdoor catering from 18 % to 5 %.
- GST Council recommended a lower 12 % cess on 1,500 cc diesel and 1,200 cc petrol vehicles with the capacity to carry up to 13 people.
- The GST Council also reduced the tax to 0 % for cups and plates made from leaves and hides.
- Tax on almond milk finalised as 18 %.
- GST on railway wagons and coaches hiked from 5 % to 12 %.
- GST on slide fasteners reduced from 18 % to 12 %.
- Marine fuel GST reduced from 18 % to 5 %.
- GST on dried tamarind reduced to 0 % from 5 %.
The decision for the change in GST was welcomed by many people dealing in the aforementioned sectors and products. Sanjay Sethi, the Chief Executive Officer (CEO) of Chalet Hotels, said, “For companies like Chalet, reduced taxation helps us focus our efforts on key aspects like fresh investments in portfolio expansion, job creation and creating sustainable green hotels.”
The new GST rates on the mentioned products will come into effect from the 1st of October.
Stay tuned for further updates.
