Hotel Rooms to Casinos: GST on key services in spotlight ahead of council meet
As Team GST, comprising state ministers and finance secretaries, convenes in the Capital from Tuesday, all attention is on how the body will handle services in the 12%, 18%, and 28% slabs, The Times of India (ToI) reported.
Services such as hotel rooms up to Rs 7,500 per night fall in the 12% bracket, while pricier rooms move to 18%. Similarly, air travel economy and business classes are taxed differently.
The Centre’s proposed revamp aims to end such classification issues, though some switches, like levies on certain banking services at 18%, may not be feasible immediately.
Insurance policies will continue to attract different rates - 18% for car or householder cover, while term and health insurance may see changes, as per the ToI report.
There are also calls to ease GST on commonly used services, such as apartment maintenance, which is taxed at 18% if monthly charges exceed Rs 7,500. Some luxury services, including casino entry, may move to the 40% slab.
