In the meeting of GST Council, GST rates have been reduced in hotel rentals. With this, people will now be able to get hotel rooms at a lower price. Now, hotel rent from 1000 rupees to 7500 rupees will attract 12 percent GST. Apart from this, 18 percent GST will be levied on hotel rentals above Rs 7500. With this, GST will not have to be given to rooms with less than one thousand rupees.
Till now, 18 per cent GST was required to be paid on hotel rentals below Rs 7500, while 28 per cent GST was levied on hotel rentals above Rs 7500. In this way, the rate of GST on hotel rentals below 7500 rupees has been reduced by 6 percent and GST on hotel rentals of more than 7500 rupees has been reduced by 10 percent.
Many important decisions were taken at the 37th meeting of the GST Council held in Goa on Friday. Giving details of the decisions taken in the GST meeting, Union Finance Minister Nirmala Sitharaman said that now 28% tax will be levied on 18% instead of 18% on beverages. Also, it has been decided to impose 12 per cent compensation cess on it. He said that some defense products will be exempted from GST / IGST.
In the agenda of this meeting, a change was made in the GST rate of automobile, biscuits, matches, outdoor catering segment. Prior to this meeting, Union Finance Minister Nirmala Sitharaman announced the reduction of corporate tax, giving relief to the company and the businessmen.
Sitharaman said that the Tax reduction ordinance has passed. He said that to promote Make in India, a new provision has been added in the IT Act. This will ensure that the new domestic company which is formed on or after October 1, 2019 and who is investing afresh, pays income tax at the rate of 15 per cent.
He said that if the company starts production before 31 March 2023, then 15 per cent tax will have to be paid. There will be 17.10 percent effective rate on all types of surcharges and cesses. He said that without any exemption on domestic companies, income tax would be 22 per cent, while adding surcharge and cess would attract an effective rate of 25.17 per cent. There will be a revenue loss of 1.45 lakh crore after this announcement.
