Friday, 19 May 2017

GST Council Fixes the Tax Rate

Srinagar / New Delhi: The GST Council on Friday fixed the tax rate for most of the services. Arun Jaitley said, education and healthcare in GST will be tax free as soon as before. There will be no difference on the train ticket. AC ticket of Railway has been kept in 5% tax slab. In the last budget, the service tax was abolished after taking ticket from IRCTC. The food in the luxury restaurant will be 17% expensive. Only 5 services, five star hotels, movie tickets, racing, betting and casino have been imposed on 28% tax. How much GST is going on in Q & A ...

Q. How many tax slabs were divided into services?
On the lines of Goods, they are also divided into 5 segments 0%, 5%, 12%, 18% and 28%.

Q. What tax rates are not fixed on services and goods?

A. Tax rates of 6 Goods and Services such as gold, cigarettes, bidi, textiles, footwear and bio-diesel have not been decided. For this, the meeting will again be held in Delhi on June 3. New tax rates will be effective from July 1.
Q. Is the electricity bill included in the Electricity Bill?

A. Electricity bill is excluded from the GST. Therefore no tax will be levied on this. It still does not seem to be a service tax.

Q. How much tax will increase on truck transport?
A. There is now 70% abatement on truck transport. That is, 30% of the shares are taxed 15%. It is only 4.5% of the bill. 5% tax is kept in GST. Because its main input is out of petrol-diesel GST. So input tax credit will not be available.

Q. What will be the difference between train travel?
A. There is no tax on Metro, Local Train, Religious and Haj Travels yet. There is no tax on non-AC train tickets. No tax on AC train ticket In the GST, there will be no tax on metro, local train, religious trips, non-AC train tickets. 5% tax on AC train ticket.

Q. How much tax on cab services like Ola-Uber?
A. CAB aggregator like Ola and Uber now has 6% tax. In GST these services are placed in a 5% slab. I.e. less than 1%

Q. Will air travel be cheap or expensive?
A. Now 6% tax on economy class tickets. 9% and 9% tax on business class tickets. 5% Taxes for Economy Class in GST That is 1% savings. 12% tax for business clauses. That is, these 3% will be expensive.

Q. How expensive is food in a restaurant or a hotel?
A. 40% of food bill is taxed 15%. If you add it to the whole bill, then it is 6%. VAT still takes 5% on the whole bill. Adding both, the total tax on food is 11%. In GST it is divided into three parts.

Non-AC Restaurant: 12% tax will be charged on food bill. That is 1% more.
Restaurants with wine licenses and ac: 18% tax. That is, 7% more.
Luxury Restaurant: A tax rate of 28% will apply. That is 17% more.

Q. Hotels stay cheap or expensive?
A. No tax on rent for up to Rs 3,000 now. More than this, 10% of the state tax (MP) is a luxury tax. That means the hotel rooms will be expensive. No tax will be levied for less than Rs.1000 in GST.

At room of 1000-2500: 12%
2500 to 5000 Rooms: 18%

5000 At the rooms of more than: 28%

Q. What will be the impact on tour and travel?

- Looks like 15%. However, there are some things exempted from this tax on the tour bills. 18% tax will be charged on tour and travel in GST. That means the tax rate will increase by 3%.
                                                                  ---Sonal

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