oppn parties GST Council Meet: Boost To Tourism and Big Relief To Small Businesses

News Snippets

  • Kapil Sibal leaves Congress, fills nomination for Rajya Sabha with SPs backing
  • RBI bans 5 NBFCs as it cracks down on e-lending platforms
  • Hindustan Motors to tie-up with Peugeot to bring out a redesigned version of the iconic Ambassador
  • GST Council to defer rate rejig due to inflation
  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
  • Stocks remain negative on Wednesday: Sensex loses 303 points to 53749 and Nifty 99 to 16025
  • IPL: RCB beat LSG by 14 runs and end their dream run. Rajat Patidar scores a brilliant 112. RCB will take on RR to decide who goes through to the finals
  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
Yasin Malik of JKLF gets two life terms in terror funding case /////// Kashmir TV artist killed and her nephew injured in a terror attack in Hushroo in Budgam district
oppn parties
GST Council Meet: Boost To Tourism and Big Relief To Small Businesses

By Linus Garg

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

The GST Council meet in Goa on Friday did not meet the expectations of the automobile industry. It did not announce the rate cut that the industry, along with biscuit manufacturers and some other sections of the FMCG industry was expecting. Instead, in an effort to boost tourism, the council rationalized rates in the hotel industry to make them at par with those prevailing across the globe. This was needed as India is emerging as a prominent tourist destination (as also for medical tourism). The council cut the rates of rooms with tariff above Rs 7501 from 28% to 18% and those with tariff between Rs 2501 to Rs 7500 to 12% from 18%. Rooms below Rs 1000 remain GST-free while those between Rs 1001 and Rs 2500 will continue to attract 12% as before. Hence, the mid-segment has been broadened to include rooms from Rs 1001 to Rs 7500 and will now attract 12% GST. The tax rate on outdoor catering has also been cut to 5%. But travelers have to be prepared to shell out more for caffeinated drinks, including energy drinks, as they will now attract 28% GST instead of 18% before and an additional compensation cess of 12%. The government is trying to discourage the consumption of such drinks as they are considered sin goods.

The other rationalization of taxes was in job work where GST on job work in diamond was reduced from 5% to 1.5% and in engineering (other than bus body building) from 18% to 12%. In order to discourage the use of single-use plastic and support alternatives, the council brought plates and cups made of leaves, flowers and barks to zero percent from the 5% currently imposed on them. But the railway wagon, coaches and rolling stock industry was in for a surprise as the GST rate on them was upwardly revised from 5% to 12% without the accumulation of ITC. But the boldest move by the council was for small traders. In a major relief, business entities with a turnover of up to Rs 2 crore were exempted from filing annual returns. This is expected to benefit a large number of businesses.