GST Council Meeting: GST Rates For Caffeinated Beverages Hiked; Rate For Hotels Reduced
Finance Minister Nirmala Sitharaman addresses a press conference. (Source: PTI)

GST Council Meeting: GST Rates For Caffeinated Beverages Hiked; Rate For Hotels Reduced

Latest First
  • Oldest First

Watch: GST Council Decisions And Analysis

The Goods and Services Tax Council today reduced tax rate on hotel tariffs in an attempt to boost India's domestic tourism industry.

Hotel rooms wit tariff up to Rs 1,000 per night will now attract no tax. Rooms with prices over Rs 1,000 and up to Rs 7,500 will now be taxed at 12 percent from 18 percent earlier.

Hotel rooms with tariffs over Rs 7,500 a night will be taxed at 18 percent from 28 percent earlier.

Among other things, the GST Council has also increased the rate on caffeinated beverages to 28 percent with 12 percent compensation cess. The rate was 18 percent earlier.

Lower Cess Recommended For Cars That Can Carry 13 Persons

Passenger vehicles of engine capacity 1,500 cc in diesel and 1,200 cc in petrol, designed for carrying up to 13 persons, will attract a compensation of 1 percent for petrol and 3 percent for diesel.

Earlier this rate was applicable for such vehicles carrying up to 9 persons.

Uniform Rate Of 12% On Polypropylene Bags And Sacks

A uniform rate of 12 percent will apply on such bags that are used for packaging goods.

Aerated Drink Makers: Excluded From Compensation Scheme

Cheaper Hotel Tariffs

GST rates on hotel tariffs have been reduced in an attempt to boost India's domestic tourism industry.

  • Hotel tariffs above Rs. 7,500: From 28% to 18%
  • Hotel tariffs from Rs. 1,000 to Rs 7,500: From 18% to 12%
  • Hotel tariffs below Rs. 1,000: Nil
  • Outside Catering: From 12% to 5%.

Cola To Get Costlier

The GST rate on caffeinated beverages has been increased to 28 percent, along with a 12 percent compensation cess. The earlier rate was 18 percent.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.