Hotel rooms

Now pay 12% tax on hotel rooms below Rs 1,000 per day, 5% GST on hospital rooms above Rs 5,000

The Goods and Services Tax (GST) Board decided on Tuesday to scrap a host of tax exemptions and raise rates for an even larger number of mass consumer items.

He approved a proposal to impose a 12% tax on hotel rooms costing less than Rs 1,000 per day. Until now, only hotels above the threshold were charged 12% GST. The Council has also agreed to levy 5% GST with no input tax credit on hospital rooms with rent above Rs 5,000, excluding Intensive Care Units (ICU).

The two-day meeting of the GST Council, which kicked off Tuesday (June 28) in Chandigarh, is chaired by Union Finance Minister Nirmala Sitharaman. The meeting also brings together State and Union Territory Finance Ministers and senior Union and State government officials.

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The Council is expected to discuss a range of issues, including a mechanism for compensating states for lost revenue, changes to the rate of taxation of certain items and relaxed registration standards for small online vendors.

The Council will also authorize the collection of the highest tax of 28% on online gambling, casinos and horse racing.

(This is a developing story)

First post: STI