After GST Council meet on Friday, rates slashed on various items

September 20: The 37th Meeting of the Goods and Services Tax (GST) Council took place in Goa on 19 and 20 September, 2019. Finance Minister Nirmala Sitharaman on Friday announced the reduction of GST rates on a variety of items. All rate changes would be effective from 1 October. Here are some of the highlights:

• GST Council cuts tax on hotel room tariffs of ₹1,000 to ₹7,500/night to 12%; those above ₹7,500 to 18%. There will be no GST on room tariffs of below ₹1,000 per night.
• A uniform GST rate of 12 % will be levied on woven/non-woven polyethylene bags. The GST Council has reduced rates for cups and plates made from leaves and hides to nil.
• GST council cuts tax rates on job work in diamond industry to 1.5% from 5%.
• GST council cuts tax rates for outdoor catering to 5% from 18%.
• GST Council recommends lower 12% cess on 1,500 cc diesel, 1,200 cc petrol vehicles with capacity to carry up to 13 people.
• GST rate on slide fasteners has been reduced from 18% to 12%

However, the GST on caffeinated beverages has been hiked to 28% plus additional cess of 12% as against the current rate of 18 per cent. GST rate hiked on railway wagon, coaches from 5% to 12%.