GST rates for services News

Revenue Secretary Hasmukh Adhia on Tuesday did not rule out the scope for rationalisation of tax rates fixed on various goods and services under the GST regime to be implemented from July one.

Now that GST rates for over 500 services and 1,200 goods have been finalised, the clamour to get petroleum products in the Goods and Services Tax (GST) net is growing, with the first salvo being fired by Jammu and Kashmir.

FMCG giant ITC rose the most among 30 Sensex constituents, climbing 2.82 percent to Rs 293.95.

E-commerce consumers are likely to remain unaffected once GST sets in from July 1 even as players like Flipkart and Amazon prepare to deduct one percent of the payment it makes to sellers under the new tax regime.

Cab rides could get marginally cheaper for customers from July 1 as the incidence of tax will come down to five percent for bookings made on cab aggregators like Ola and Uber.

Domestic ratings agency Crisil has said it will take six months for industrial stabilisation after GST is introduced but gains of the biggest indirect tax reform will take up to 3 years to materialise.

The GST Council has decided to apply the same four tax rate slabs for services as for goods, but exempted healthcare and educational services from the purview of the GST.

Buying an insurance cover will become an expensive proposition from July 1 with the GST Council deciding to club it with the financial services sector and taxing it at 18 percent under the GST regime.

Economy class air travel will become cheaper with tax rate fixed at 5 percent against the existing 6, under the upcoming GST regime from July 1.

Telephone bills and mobile handset prices will go up from July 1 when the new Goods and Services Tax regime kicks in, raising incidence of taxation on the telecom sector.

The Odisha Assembly has passed the Odisha Goods and Services Tax Bill, 2017 and the Odisha Value Added Tax (Amendment) Bill, 2017, paving the way for the rollout of the indirect tax regime from July 1 in the state.

The telecom industry, expressing its disappointment over the 18 percent Goods and Services Tax (GST) rates, on Friday said it will further stress the already bleeding balance sheet of the sector.

The GST Council finalised four tax rates of 5, 12, 18 and 28 percent to apply on services including telecom, insurance, hotels and restaurants under the biggest tax reform since the Independence.