GST Council cuts rates; Hotels to be taxed on actual tariff basis

Giving a much needed relief to the tourism sector, the GST Council has slashed the rates as per the demands of the industry. The GST of those hotels which has tariff rates upto Rs 7500 is reduced to 18 per cent. For hotels with the tariff rate of Rs 7500 plus, the GST will remain as 28 per cent.

The council also decided that GST for hotels to be charged on the actual price that the customer pays and not on the declared tariffs.

The GST Council in its 28th meeting, chaired by interim Finance Minister Piyush Goyal, has decided to reduce tax rates on several general-used items like TV, washing machines and refrigerators. The council has also put sanitary napkins under the exempted category. The new rates would come into effect from July 27th.