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Friday, 19 May 2017

GST rates: Services to have 4 slabs; education, healthcare exempted

GST rates: Services to have 4 slabs; education, healthcare exempted

India moved towards a multi-tiered service tax structure with the Finance Minister Arun Jaitley-headed GST Council deciding on Friday to place services under four slabs—5, 12, 18 and 28 percent— compared to the current uniform 15 percent levy on all eligible services.

“GST in relation to the service sector was completely adopted in today’s meeting,” Jaitley told newspersons after the conclusion of the two-day GST council meeting in Srinagar.

“In the services sector depending on the nature of the service, and for special reasons, various categorisations have been made,” he said.

Jaitley said that the current exemptions on services such as healthcare and education will continue, and the overall impact on services costs after GST will be non-inflationary.

“The weighted average and given the large number of exemptions, the impact (inflationary) will be significantly below that. Keep one fact in mind that they will also start getting the input credit of goods consumed,” he said.

Transport services including air services and goods transport will be taxed at 5 percent from the existing 15 percent, raising prospects of lower air fares after GST’s roll-out from July 1.

Read News in Gujarati