The Goods and Services Tax (GST) Council on Tuesday decided to remove a host of tax exemptions and hike rates for an even larger number of mass-consumption items.
It approved a proposal to impose a 12 percent tax on hotel rooms costing below Rs 1,000 per day. So far, only hotels above the threshold were charged 12 percent GST. The Council also agreed to levy a 5 percent GST without input tax credit on hospital rooms with rent above Rs 5,000, excluding intensive care units (ICUs).
#CNBCTV18Exclusive | Svcs by #GSTN to #Govt:
Hotel accommodation below Rs 1,000/unit/day to be taxed at par w/others at 12%Hospital rooms, except ICU with daily rent of Rs 5,000 to be taxed at 5% without input tax credit (ITC)
— CNBC-TV18 (@CNBCTV18Live) June 28, 2022
The two-day GST Council meeting, which began on Tuesday (June 28) in Chandigarh, is being chaired by Union Finance Minister Nirmala Sitharaman. The meeting is also being attended by the finance ministers of states and Union territories and senior officers from the union government and states.
The Council is slated to discuss an array of issues, including a mechanism for compensating states for revenue loss, tax rate tweaks in some items and relaxed registration norms for small online suppliers.
The Council will also clear levying the highest tax of 28 percent on online games, casinos and horse racing.
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