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%.
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.
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.
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.
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.
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
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
|Power Grid Corp||198.85||-1.25||-0.62|
Recommended For You
- Cristiano Ronaldo Speaks About His Targets And Rivalry With Lionel Messi
- Rohit, Dhawan Shine as Indian Openers Dominate 2017
- Mayweather-McGregor Fight Second Richest Ever
- TVS Apache RR 310 Vs KTM RC 390: Specs, Price, Features and Which One is a Better Sports Bike?
- How to Improve Your Child's IQ during 6 different Stages?