GST council hikes tax on caffeinated beverages
Panaji, Sep. 20 (PTI): The all-powerful GST Council on Friday more than doubled the tax on caffeinated beverages to 40 per cent and slashed the rate on hotel room tariffs.
Briefing reporters after a meeting of the panel, Finance Minister Nirmala Sitharaman said the GST on caffeinated beverages has been hiked to 28 per cent plus additional cess of 12 per cent as against the current rate of 18 per cent.
For hotels, she announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 per cent tax as against the existing 18 per cent.
Similarly, the tax on room tariff of above INR 7,500 has been slashed to 18 per cent from the existing 28 per cent.
Also, tax on outdoor catering has been reduced to 5 per cent from existing 18 per cent with input tax credit, she said.
The GST was also cut on marine fuel to 5 per cent while the same on railway wagons, coaches, roling stock has been increased from 5 per cent to 12 per cent.