33 C
Delhi
Monday, May 25, 2020

Big Friday for India Inc, GST Council cuts rates on various items

Big Friday for India Inc, GST Council cuts rates on various itemsPanaji, Sep 20 (IANS) Friday proved to be a big day for India Inc. After a slew of tax concessions including reduction in corporate tax from 30 per cent to 22 per cent, the GST Council has lowered tax on a number of goods and services to spur demand.

The key sectors which would benefit from GST rate cuts are hotels, gems & jewellery, defence and automobiles.

- Advertisement -

Announcing the rate cuts following the GST Council meeting here, Finance Minister Nirmala Sitharaman said that hotels room with tariff of Rs 7,500 crore would now attract 18 per cent GST from 28 per cent earlier. The hotel rooms costing between Rs 1,000 and Rs 7,500 would attract 12 per cent GST. No tax would be levied on hotel rooms with rental upto Rs 1,000.

Among other rate changes, the Council has reduced rates for cups and plates made from leaves and hides to nil. The GST on caffeinated beverages has, however, been increased from 18 per cent to 28 per cent plus additional 12 per cent cess.

The Council has exempted specified defence items from GST to promote this key sector.

Among other major items, the Council has reduced compensation cess on passenger vehicles with seating capacity of 10-13 persons by 1-3 per cent, thus making them cheaper.

Railway wagons, coaches and rolling stocks would, however, now attract higher GST of 12 per cent from 5 per cent earlier.

The revised GST rates would become effective from October 1, 2019.

In a major boost to gems and jewellery sector, the Council recommended to reduce GST on cut and polished semi-precious items to 0.25 per cent from 3 per cent now.

The two back-to-back announcements are set to boost growth and investment.

With most engines of growth stuttering and GDP declining to six-year low of 5 per cent in the April-June quarter, pressure has been mounting on the government to revive the economy. Some external factors like US-China trade war has added to the woes.

In the wake of domestic and external headwinds, the Reserve Bank of India recently lowered its GDP forecast and pegged it at 6.9 per cent in 2019-20. Several rating agencies and research firms expect the growth to be in the range of 6.5-7 per cent.

The poor show in the first quarter of the current fiscal has prompted the Modi government to take measures to boost growth and lift business sentiment. Starting August 23, Finance Minister Sitharaman has announced four set of measures to put economy on fast track.

Total Cases

Active Cases

Recovered

Deaths

138844

             77103

57720

4021

Covid 2019 India Stats Overview. Source: Ministry of Health and Family Welfare. Updated: 25 May 2020, 08:00

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Cabinet nod to law on domicile conditions for jobs in J&K

New Delhi, May 20 (IANS) The Union Cabinet on Wednesday gave its ex-post facto approval for the Jammu and...

Covid cases to surge from migrant influx, but we are ready: Harsh Vardhan

New Delhi, May 25 (IANS) Union Health Minister Harsh Vardhan on Sunday said that coronavirus cases will increase in different parts of the country...

Mandatory 14 days quarantine guidelines for internatioal arrivals

New Delhi, May 25 (IANS) The Union Ministry for Health and Family Welfare has come up with guidelines for international arrivals into India through...

71% prefer domestic travel, only 1.4% wish to go abroad

New Delhi, May 25 (IANS) A survey by the Confederation of Indian Industry (CII) has shown that around 71 per cent people in the...

Retail trade lost Rs 9 lakh cr of business in 60 days: CAIT

New Delhi, May 25 (IANS) India''s retail trade lost business of around Rs 9 lakh crore during the past 60 days of the nationwide...

More Articles Like This