Sunday, August 9, 2020
Home Business GST Council Lowers Tax on Number of Goods and Services to Spur...

GST Council Lowers Tax on Number of Goods and Services to Spur Demand

The hotel rooms costing between Rs 1,000 and Rs 7,500 would attract 12 per cent GST

Friday proved to be a big day for India Inc. After a slew of tax concessions including reduction in corporate tax from 30 per cent to 22 per cent, the GST Council has lowered tax on a number of goods and services to spur demand.

The key sectors which would benefit from GST rate cuts are hotels, gems & jewellery, defence and automobiles.

Announcing the rate cuts following the GST Council meeting here, Finance Minister Nirmala Sitharaman said that hotels room with tariff of Rs 7,500 crore would now attract 18 per cent GST from 28 per cent earlier. The hotel rooms costing between Rs 1,000 and Rs 7,500 would attract 12 per cent GST. No tax would be levied on hotel rooms with rental upto Rs 1,000.

Among other rate changes, the Council has reduced rates for cups and plates made from leaves and hides to nil. The GST on caffeinated beverages has, however, been increased from 18 per cent to 28 per cent plus additional 12 per cent cess.

GST, Council, Tax
Friday proved to be a big day for India Inc. After a slew of tax concessions including reduction in corporate tax from 30 per cent to 22 per cent, the GST Council has lowered tax. Pixabay

The Council has exempted specified defence items from GST to promote this key sector.

Among other major items, the Council has reduced compensation cess on passenger vehicles with seating capacity of 10-13 persons by 1-3 per cent, thus making them cheaper.

Railway wagons, coaches and rolling stocks would, however, now attract higher GST of 12 per cent from 5 per cent earlier.

The revised GST rates would become effective from October 1, 2019.

Also Read- Smokers Who Quit Do Not Generally Turn their Gaze Towards Mouth-Watering Food as Normally Thought

In a major boost to gems and jewellery sector, the Council recommended to reduce GST on cut and polished semi-precious items to 0.25 per cent from 3 per cent now.

The two back-to-back announcements are set to boost growth and investment.

With most engines of growth stuttering and GDP declining to six-year low of 5 per cent in the April-June quarter, pressure has been mounting on the government to revive the economy. Some external factors like US-China trade war has added to the woes.

GST, Council, Tax
The key sectors which would benefit from GST rate cuts are hotels, gems & jewellery, defence and automobiles. Pixabay

In the wake of domestic and external headwinds, the Reserve Bank of India recently lowered its GDP forecast and pegged it at 6.9 per cent in 2019-20. Several rating agencies and research firms expect the growth to be in the range of 6.5-7 per cent.

Also Read- Scientists Reform Face Of Another Human Ancestor

The poor show in the first quarter of the current fiscal has prompted the Modi government to take measures to boost growth and lift business sentiment. Starting August 23, Finance Minister Sitharaman has announced four set of measures to put economy on fast track. (IANS)

STAY CONNECTED

18,958FansLike
362FollowersFollow
1,780FollowersFollow

Most Popular

Redecorating Your Home Amid Pandemic

By Puja Gupta After coping with the sudden disruption caused by the lockdown, families across India are now settling down to make the best of...

94% People Feel Happier When Outdoors: Survey

By SIddhi Jain Social distancing norms is the ''new normal" and it has the world spending more time indoors than ever, but a new survey...

Assisted Living Homes and Their Importance for Elderly People

By Siddhi Jain Shrinking family sizes, lack of awareness about age-related conditions and availability of specialised care homes for the elderly are some of the...

Understand the Procedure and Importance of IVF

By Puja Gupta According to WHO, every 1 in 8 couples (or 12 per cent of married women) has gone through complexities getting pregnant or...

Try These Recipes to Get Super Charged with Nutrients you Need

By Simrun Chopra 2020 is unlike any year we have seen and in parts of the country this monsoon is unlike any we have seen. Staying...

Sidharth Malhotra has Felt a Wide Range of Emotions this Year

Actor Sidharth Malhotra has felt a wide range of emotions over the past few months. When the year 2020, started, he enjoyed some relaxing time,...

How Relevant Is The Existence Of Censor Board Of Film Certification?

There is a curious situation vis a vis the Censor Board of Film Certification! How relevant is its existence now? The Board, which was...

Vidyut Jammwal Reveals Secret of his Upper Body Strength in a Video

Action star and fitness enthusiast Vidyut Jammwal has revealed the secret of his upper body strength. Vidyut has uploaded a video of him performing Kalari...

Recent Comments