The government fixed the GST (Goods and Services Tax) on Friday and the most of things will be cheaper as of now. Education and health sector has been left from GST regime. Finance Minister Arun Jaitly said that new tax slabs will be apllied from 1st of july 2017.
Government has finalized four tax slabs that will apply to different service like hotels, insurance, telecom sector, daily usage products etc. The tax rates for GST will be 5%, 12%, 18%, and 28%. Tax for transport services will be 5% while for telecom and financial sector it will be 18%. The new tax slabs may affect your budget to restaurant bill to mobile phone bills. The tax rates for gold category is not finalized yet, the counsil will meet again on 3rd of june 2017.
Non air condition restaurant will be in lower slab from 5 percent to 12 percent depending on its quality while the air condition restaurant will be on 18 percent tax slab. Room tarrif of less than rs1000 will be free from tax and above rs1000 starts with 5 percent and goes to 28 percent Having food in 5 star restaurant would cost 28 percent of higher tax slab. Railways, Airways and road transport will in lower slab of 5 percent. Flight tickets of economy class may be cheaper.
Religious travel like Haj yatra and all, travelling on metro, local trains will be exempt from GST slabs. Government said today that the council’s focus was to keep rates low for goods and services.
The GST council finalized tax rates of more than 1000 items of which 81 percent items will be in 18 percent slab and 19 percent of products will be taxed to 28 percent of slab. Finance Minister Arun jaitly said that it wiil not effect people as the most of the food items are out of tax slabs. Taxes of processed food item will be between 12 to 28 percent. The most common goods and services tax will be on 18 percent tax slab.