Yes yes, GST rates are here! India has cleared the way for the biggest tax reform since independence in 1947.
The main beneficiaries of the new goods and services tax, due to be rolled out on July 1, include steelmakers and some consumer goods.
- The food items which currently attracted an average of 12.5% tax under VAT laws will now be taxed at 5% under the new regime.
- Entertainment activities, household and personal care products will become cheaper under the upcoming regime.
- 18% tax slab for telecom, financial services.
- Service tax on non-AC hotels will be 12%, on AC hotels that serve liquor will be 18%. Higher tax rate for luxury hotels.
- Hotels and lodges with tariff below Rs 1,000 will be exempt. Those with Rs 2,500-5,000 will be 18%. Luxury hotels will face tax of 28%.