NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / GST Council meeting: Push for hospitality; no relief for auto-sector
    Next Article
    GST Council meeting: Push for hospitality; no relief for auto-sector

    GST Council meeting: Push for hospitality; no relief for auto-sector

    By Sagar
    Sep 21, 2019
    11:11 am

    What's the story

    Union Finance Minister Nirmala Sitharaman addressed the media, following the 37th GST Council meeting in Goa yesterday.

    The council has approved tax cuts for various sectors including hospitality, jewelry and defense, she announced.

    The tax changes are aimed at boosting the country's abysmal economic condition, and shall be effective from October 1.

    Here are the key highlights from the press conference.

    Context

    Context: India is going through a major economic slowdown

    To note, the crucial GST meet took place when economic growth in India is going though one of its worst phases in recent times.

    The GDP growth rate of the Indian economy has dropped to 5% in the first quarter of fiscal year 2019-20, lowest in six years.

    Moreover, India's automobile sector is striving for survival; consumer-demand has fallen, and manufacturing sector is failing.

    Details

    Council approves tax rate relief for hospitality industry

    In what could bring a major boost to the hospitality and tourism sector, hotel room tariffs of Rs. 7,500 or above will now be taxed at 18%, compared to 28% previously.

    Further, GST rate on hotel room tariffs between Rs. 1,001 and Rs. 7,500 has been reduced to 12% from 18%.

    No GST charge shall be levied on hotel tariffs up to Rs. 1,000.

    Information

    Caffeinated drinks to get costlier, under revised GST rates

    Meanwhile, consumers of caffeinated beverages are in for a disappointment, as applicable GST rate on such drinks has been hiked from 18% to 28%. An extra 12% compensation cess will also be levied. However, aerated drinks will no longer come under the compensation scheme.

    Jewelry

    GST on cut and polished semi-precious stones reduced to 0.25%

    Moving on, GST rate applicable on cut and polished semi-precious stones has been slashed drastically from 3% to 0.25%.

    Further, no GST will be levied on jewelry exports from now.

    Moreover, tax rate on job work services related to diamonds has dipped from 5% to 1.5%.

    Separately, for machine job works in engineering industry, the GST rate has come down from 18% to 12%.

    Exemptions

    No GST will be levied on defense-goods not produced indigenously

    The FM also announced several tax exemptions.

    For one, group insurance schemes for paramilitary forces under the Home Affairs Ministry will now be free from GST.

    Further, no GST will be levied on specified defense goods that are not manufactured in India, until 2024.

    Clearing more air, the Council recommended that fishmeal be exempt from GST from July 17 to September 30 this year.

    Auto

    However, despite requests, no relief for biscuit and auto makers

    However, despite repeated requests by stakeholders (including consumer biggies like Britannia and Parle), the GST Council rejected proposals to reduce tax rate on biscuits.

    Moreover, no tax relief for automobile industry was considered, despite the sector's appalling condition.

    The GST Council has finalized 12% cess on 1,500cc diesel and 1,200cc petrol vehicles with the capacity to carry maximum 13 people.

    Corporate tax

    Earlier yesterday, the government slashed corporate tax rates

    Earlier yesterday, the government also slashed income tax for corporates.

    It was announced that basic corporate tax for for domestic companies and new manufacturing organizations has been brought down to 22% (effective rate 25.17%) and 15% (effective rate 17.01%) respectively.

    The move, that will cost the government Rs. 1.45 lakh crore annually, resulted in massive surge in Indian stock markets.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    India
    Ministry Of Home Affairs
    Nirmala Sitharaman
    GST

    Latest

    IPL: Shreyas Iyer becomes first captain with this record Shreyas Iyer
    Pakistan targeted Golden Temple after India struck terror camps: Army  Golden Temple
    'Kill' fame Raghav Juyal may join Nani's 'The Paradise' Anirudh Ravichander
    Mubi acquires Jennifer Lawrence's Cannes sensation 'Die, My Love' Cannes Film Festival

    India

    This 'sweet Maggi' recipe is making everyone's stomach churn Nestle
    India vs South Africa, 2nd T20I: Preview, Dream11 and more Rohit Sharma
    OnePlus TV, OnePlus 7T-series to be launched on September 26 OnePlus TV
    Aadhaar: Some lesser-known features you may not know about Supreme Court Of India

    Ministry Of Home Affairs

    26 people arrested for attacking whistle-blowers exposing scams: Govt Jitendra Singh
    West Bengal to be now called 'Bangla', Assembly passes resolution West Bengal
    Recruitment of 4,000 personnel for Delhi Police under consideration: Rajnath Delhi Police
    Cash in ATMs won't be replenished after 9pm from 2019 India

    Nirmala Sitharaman

    Defense Minister Nirmala Sitharaman slams Rahul Gandhi over Rafale allegations India
    Defense Minister Nirmala Sitharaman visits Abhinandan Varthaman in Delhi hospital India
    Civility a rare virtue in Indian-politics: Tharoor on Sitharaman's visit Shashi Tharoor
    Sunny Deol's decision to join BJP floods Twitter with memes X

    GST

    Pre-Dhanteras high prices, cash crunch take sheen off gold India
    LPG dealers' commission hikes cylinder price by over Rs. 2 India
    India's economic growth held back due to demonetization, GST: Rajan India
    #FinancialBytes: 5 best GST software for small businesses Business
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025