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Finance Minister announces 28% GST on Hotels with tariff of over INR 5000

18% on AC restaurants serving liquor

Friday, May 19, 2017, 16:50 Hrs  [IST]

Arun Jaitley, Union Finance Minister headed Goods and Service Tax (GST) Council decided to place the service sector under four slabs of 5%, 12%, 18% and 28% as compared to the current uniform 15% levy on all eligible services, reported TOI.

Restaurants with an annual turnover of less than INR 50 lakh will fall under the 5% tax slab, while non-AC food joints will be taxed at 12%. Air-conditioned restaurants with liquor licences will be taxed at 18%.

Hotels and lodges will a tariff below Rs 1000 a day will be exempted from GST, while those with a room rate of between INR1000-2500 will be taxed at 12%. Five star and luxury hotels will be taxed at 28%.

“GST in relation to the service sector was completely adopted in today’s meeting. In the services sector depending on the nature of the service, and for special reasons, various categorisations have been made,” Jaitley told press after the conclusion of the two-day GST council meeting in Srinagar. (Source:TOI)

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