GST rates: Ola, Uber rides and movie-going to be cheaper | Check the list | business news | Hindustan Times
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GST rates: Ola, Uber rides and movie-going to be cheaper | Check the list

The GST Council finalised four tax rates of 5%, 12%, 18% and 28% on services including telecom, insurance, hotels and restaurants under the biggest tax reform since independence.

business Updated: Jul 08, 2017 18:46 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
The government has unveiled four rate bands under a new sales tax for services such as telecoms, insurance, restaurants and cinemas.
The government has unveiled four rate bands under a new sales tax for services such as telecoms, insurance, restaurants and cinemas.(Saumya Khandelwal/HT Photo)

India fixed four categories of taxes for services such as transport, entertainment and banking services on Friday, taking a step closer to meeting a July 1 deadline for the rollout of the country’s biggest tax reform.

Eating out at small restaurants and dhabas, hiring a cab or staying in a non-5 star hotel will be cheaper under the new Goods and Services Tax regime. Education, health and public transport will be exempt.

The decisions came at the end of a two-day meeting of the GST Council headed by Union finance Arun Jaitley and which also includes his counterparts from states. The council has already fixed GST rates for household items and manufactured goods.

SERVICESGST RATESLOWER OR HIGHER
Education0%No change
Health0%No change
TRANSPORT
Cabs like Ola, Uber5%Lower
Metro, local train0% No change
Non-AC train0% No change
AC train5%Lower
Air economy class5%Lower
Air business class12%Higher
ENTERTAINMENT AND LEISURE
Cinema28%Lower
EATERIES
Dhabas (With annual sales under Rs 50 lakh)5%Lower
Non-AC restaurant12%Lower
AC restaurants, bars18%Lower
5-star hotels28%Higher
HOTELS WITH TARIFF
Up to Rs 1,000/day0%Lower
Rs 1,000-2,000/day12%Lower
Rs 2,000-5,000/day18%Higher
Above Rs 5,000/day28%Higher
TELECOM18%Higher
FINANCIAL SERVICES18%Higher