GST council meet:Telecom, biz-class airfare, advts costly; edu, healthcare exempted

Transport services will be taxed at 5 percent leading to a small in economy class air travel which currently attracts 6 per cent service tax.

JOYEETA DEY
Srinagar, Publish Date: May 20 2017 12:19AM | Updated Date: May 20 2017 1:53AM
GST council meet:Telecom, biz-class airfare, advts costly; edu, healthcare exemptedGK Photo

Education and healthcare will continue to be exempted from tax in the upcoming GST regime that will see service tax incidence go up on telecom, business class air travel, insurance and sale of newspaper space for advertisement.

Transport services will be taxed at 5 percent leading to a small drop in economy class air travel which currently attracts 6 per cent service tax.

Non AC train travel, including in local trains and metro, as well as religious travel including Haj yatra will remain exempted from GST.

Five per cent rate will also apply to cab aggregators like Ola and Uber, which currently pay 6 per cent tax. AC train travel will attract 5 per cent service tax, same as freight levy.

The all-powerful GST Council finalised four tax rates of 5, 12, 18 and 28 per cent for services including telecom, insurance, hotels and restaurants under the biggest tax reform since the Independence.

The rates are in line with those finalised for goods. With this, rates of all items except a handful including gold, have been decided ahead of the roll out of the Goods and Services Tax (GST) regime from July 1.

Space selling for advertisement in newspapers will attract 5 per cent levy in GST. It is exempted from tax currently.

Briefing reporters here after the two-day meeting of the Council, Finance Minister Arun Jaitley said telecom and financial services will be taxed at a standard rate of 18 per cent.

Service tax on telecom like phone bill payment totals to 15 per cent at present.

However, Revenue Secretary Hashmukh Adhia insisted that the tax incidence on telecom services will be unchanged at 15 per cent after the input credit is taken on equipment.

While economy class air travel will attract 5 per cent GST, the business class will be charged at 12 cent, he said.

Jaitley said non-AC restaurants will charge 12 per cent GST on food bill. The tax rate for AC restaurants and those with liquor licence will be 18 per cent, while 5-star hotels will charge 28 per cent GST.

Restaurants with Rs 50 lakh or below turnover will go under the 5 per cent composition, he said.

Work contracts like white washing will be liable for a 12 per cent GST. 

Latest News

  1. Omar Abdullah calls heckling video ‘tamasha’, says Berkeley session was 'great, substantial'
  2. Omar Abdullah calls heckling video ‘tamasha’, says Berkeley session was 'great, substantial'
  1. Delhi based designer Leena Singh dedicates her 2018 collection to Kashmiri craftsmen
  2. Delhi based designer Leena Singh dedicates her 2018 collection to Kashmiri craftsmen
  1. Biker, two accomplices arrested for forcibly stopping scooty rider in Bhadarwah
  2. Biker, two accomplices arrested for forcibly stopping scooty rider in Bhadarwah
  1. Mulling changing law to award death to sexual assaulters of kids: Govt
  2. Mulling changing law to award death to sexual assaulters of kids: Govt
  1. Harsh weather damages orchards and property in south Kashmir
  2. Harsh weather damages orchards and property in south Kashmir
  1. India, Pak trade fire along LoC in Nowshera
  2. India, Pak trade fire along LoC in Nowshera
  1. ‘Wake up your conscience’, legislator Rasheed asks Jammu and Kashmir police
  2. ‘Wake up your conscience’, legislator Rasheed asks Jammu and Kashmir police
  1. Mirwaiz demands justice for Kathua minor, reopening of Kashmir rape cases since 1990
  2. Mirwaiz demands justice for Kathua minor, reopening of Kashmir rape cases since 1990
  1. Prashant Bhushan files complaint against BJP leader who claimed torching Rohingya settlements in Delhi
  2. Prashant Bhushan files complaint against BJP leader who claimed torching Rohingya settlements in Delhi
  1. Nine-year-old raped, killed in Uttar Pradesh
  2. Nine-year-old raped, killed in Uttar Pradesh
  1. Seven parties submit notice to impeach Chief Justice of India Dipak Misra
  2. Seven parties submit notice to impeach Chief Justice of India Dipak Misra
  1. Mobile Internet service snapped in Rajouri after protests over boy's death
  2. Mobile Internet service snapped in Rajouri after protests over boy's death
  1. Kulgam boy putting up at Barzulla found dead, police begins probe
  2. Kulgam boy putting up at Barzulla found dead, police begins probe
  1. Army commanders discuss Kashmir situation
  2. Army commanders discuss Kashmir situation
  1. Former Delhi HC Chief Justice Rajinder Sachar passes away
  2. Former Delhi HC Chief Justice Rajinder Sachar passes away
  1. Internet services suspended in Srinagar
  2. Internet services suspended in Srinagar
  1. Renowned Kashmir cardiologist Dr Sajad Reshi passes away
  2. Renowned Kashmir cardiologist Dr Sajad Reshi passes away
  1. PDP constitutes political affairs committee
  2. PDP constitutes political affairs committee
  1. Rail blockade at Chengail in West Bengal on Kathua rape case
  2. Rail blockade at Chengail in West Bengal on Kathua rape case
  1. SC seeks AG's help on media gag on CJI impeachment
  2. SC seeks AG's help on media gag on CJI impeachment
  1. Naroda Patiya massacre: Gujarat HC acquits ex-BJP minister Kodnani, convicts Babu Bajrangi
  2. Naroda Patiya massacre: Gujarat HC acquits ex-BJP minister Kodnani, convicts Babu Bajrangi
  1. JKLF Chief Yasin Malik detained in Srinagar
  2. JKLF Chief Yasin Malik detained in Srinagar
  1. Omar takes dig at Dy CM, accuses BJP of playing politics over Kathua rape and murder
  2. Omar takes dig at Dy CM, accuses BJP of playing politics over Kathua rape and murder
  1. Video | Fresh snowfall in higher reaches of Kashmir, rains lash plains
  2. Video | Fresh snowfall in higher reaches of Kashmir, rains lash plains
  1. Muslims observe shutdown in Chenab valley to demand speedy trial in Kathua case
  2. Muslims observe shutdown in Chenab valley to demand speedy trial in Kathua case
  1. Sonamarg-Zojila road closed for traffic after fresh snowfall
  2. Sonamarg-Zojila road closed for traffic after fresh snowfall
  1. UN staff increasingly becomes target of attack: Guterres
  2. UN staff increasingly becomes target of attack: Guterres
  1. Mughal road closed for traffic after landslide
  2. Mughal road closed for traffic after landslide
  1. Qatar approves draft law on property ownership by foreigners
  2. Qatar approves draft law on property ownership by foreigners
  1. Scientists find way to bend, stretch diamond
  2. Scientists find way to bend, stretch diamond