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GST: Dining Out, Hotel Room Tariffs to be Cheaper; Cars, ACs to Get Costlier

Finance Minister Arun Jaitley said in a press conference after the two day meeting in Srinagar that non-AC restaurants will have to pay a 12% tax rate while their AC counterparts will have to pay 18%.

Tushar Dhara | News18.com

Updated:May 19, 2017, 6:56 PM IST
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GST: Dining Out, Hotel Room Tariffs to be Cheaper; Cars, ACs to Get Costlier
The finance ministers’ meeting in Srinagar has fixed tax rates for 1,200 categories of goods and services and everything looks set for the rollout of the GST on July 1. (Getty images)

New Delhi: Dining out at restaurants and hotel room tariffs will get cheaper, along with essential items like vegetables, milk and food grains, under the soon-to-be-rolled-out Goods and Services Tax regime. Cars, two-wheelers, air conditioners and make up products, on the other hand, will become more expensive.

GST-for your pocket1

The decks have been cleared for the most ambitious tax reform since 1947. The finance ministers’ meeting in Srinagar has fixed tax rates for 1,200 categories of goods and services and everything looks set for the rollout of the GST on July 1.

Finance Minister Arun Jaitley said in a press conference after the two-day meeting in Srinagar that the tax rates for most items had been fixed and the rate on the few items left will be decided soon. “The GST should be rolled out on July 1,” Jaitley said.

Four tax rates have been set under the GST: 5% (essentials), 12% and 18% (standard rate), and 28% (luxury rate). Apart from this, there is a nil rate, which means that items like newspapers, food grain, vegetables and milk will attract no tax.

GST-for your pocket2

Non-AC restaurants will have to pay a 12% tax rate while their AC counterparts will have to pay 18%. Considering that currently dining out attracts a VAT as well as service tax, which adds up to more than 20%, the burden on consumers is likely to reduce under GST.

GST-for your pocket3

Hotel rooms with a tariff of below Rs 1,000 will be exempt from tax, while those between Rs 1,000 and Rs 2,500 will attract a tax rate of 12%, and those between Rs 2,500 and Rs 5,000 will be taxed at 18%.

 

GST-for your pocket4

 

Items whose prices are likely to go up:
Two-wheelers/cars/SUVs/commercial vehicles, cement, ACs and refrigerators, fast moving consumer goods, chocolates, paints, sanitaryware and tiles

 

GST-for your pocket5

Items whose price are likely to go down:
Vegetables, Food grain, Fresh milk, Hair oil, cold drinks

Items whose prices are likely to remain the same:
Butter, cheese, ghee, pastries and cakes, tractors, milk powder, baby food, ice creams

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