GST Council has slashed tax rates on several items, including hotel room tariffs and cut and polished semi-precious stones. The Council recommended tax rate increase in some other items. Council has also decided to link Aadhaar with registration of taxpayers under GST and also examined the possibility of making Aadhaar number mandatory for claiming refunds.
The 37th GST Council meeting was held in Goa on Friday under the chairmanship of Finance & Corporate Affairs, Minister Nirmala Sitharaman. Finance Minister announced that no GST will be charged for hotel rooms having tariffs of upto 1,000 Rupees per night. She said 12 per cent GST will be levied on the hotel room from the existing 18 per cent whose tariff ranges between 1,001 to 7,500 Rupees.
Hotel room having tariff of 7,500 Rupees and above will be charged 18 per cent from the existing 28 per cent. Minister said that GST Council recommended to lower 12 per cent cess on 1,500 CC diesel and 1,200 CC petrol vehicles with capacity to carry up to 13 persons.
GST council has also recommended to reduce the GST rates on slide fasteners, marine fuel, wet grinders and dried tamarind. It decided to exempt the imports of specified defence goods not being manufactured indigenously and supply of goods and services to Food and Agriculture Organisation for specified projects in India.
Nirmala Sitharam said that caffeinated beverages will be charged with 28 percent tax plus 12 percent compensation cess in place of existing tax rate of 18 percent. GST rates on railway wagon and coaches have been hiked from 5 per cent to 12 per cent.