Hotel rooms costing Rs 2500-Rs 7500 will be taxed at 18% while those above Rs 7500 will attract levy of 28%, Jaitley said on Sunday, finalising June 30 midnight for the countrywide roll out of the Goods and Services Tax (GST).
“GST on restaurants in these hotels will be at par with other air-conditioned restaurants, that is 18%,” finance minister Arun Jaitley said after a meeting of the GST council in Delhi.
The council also fixed the tax of state-run lotteries at 12% and of state authorised lotteries at 28%.
“The official launch of the GST will take place on the midnight of June 30 and July 1 at a function in Delhi,” Jaitley added.
Hailed as the country’s biggest tax reform since Independence, GST will unify Asia’s third largest economy into a common market, eliminating a string of central and state levies.The Narendra Modi government is keen to ensure a seamless transition to GST, which is expected to shore up state and federal tax revenues, cool inflation and accelerate economic growth by 1-2 percentage points in the medium term.
Post Your Comments