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)
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)

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.
Hindustan Times, New Delhi | By HT Correspondent
UPDATED ON JUL 08, 2017 06:46 PM IST

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.

SERVICES GST RATES LOWER OR HIGHER
Education 0%  No change
Health 0% No change
TRANSPORT    
 Cabs like Ola, Uber 5%  Lower
 Metro, local train 0%   No change
 Non-AC train 0%   No change
 AC train 5%  Lower
 Air economy class 5%  Lower
 Air business class 12% Higher
 ENTERTAINMENT AND LEISURE    
 Cinema 28%  Lower
EATERIES    
Dhabas (With annual sales under Rs 50 lakh) 5%  Lower
Non-AC restaurant 12%  Lower
AC restaurants, bars 18%  Lower
5-star hotels 28%  Higher
HOTELS WITH TARIFF    
Up to Rs 1,000/day  0%  Lower
Rs 1,000-2,000/day  12%  Lower
Rs 2,000-5,000/day  18%  Higher
Above Rs 5,000/day  28%  Higher
TELECOM  18%  Higher
FINANCIAL SERVICES  18%  Higher
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