GST Council recommends reduction in GST rate for Hotel accomodation

Speed Post News Network

New Delhi : The 37^thGST Council met at Goa on September 20, 2019,  under the Chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs  Anurag Thakur besides Chief Minister of Goa Pramod Sawant,  Finance Ministers of States & UTs and seniors officers of the Ministry of Finance.

To Council recommended reduction in  the rate of GST on hotel accommodation service. No GST will be charged on Rs 1,000 and less while for Rs 1,001 to Rs 7,500 the GST rate will be 12 %. For Rs 7,501 and more, the GST rate will be 18 %, according to a PIB release.

The GST Council recommended GST rates reduction 1from 8% to 12% on parts of Slide Fasteners, 18% to 5% on Marine Fuel 0.5% (FO) , 12% to 5% on Wet Grinders (consisting stone as a grinder), 5% to Nil on: Dried tamarind and Plates and cups made up of leaves/ flowers/bark, 3% to 0.25% on cut and polished semi- precious stones.

The GST rates have, however, been recommended to be increased from 5% to 12% on goods falling under chapter 86 of tariff like railway wagons, coaches, rolling stock (without refund of accumulated ITC) to address the concern of ITC accumulation with suppliers of these goods, and 18% to 28% +12% compensation cess on caffeinated Beverages