The all-powerful Goods and Services Tax (GST) Council, headed by Union Finance Minister Nirmala Sitharaman and having representatives of all states, has hiked tax on caffeinated drinks to 28 percent plus additional cess of 12 percent as against the present rate of 18 percent. However, for hotels, it announced nil tax for those with tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night room tariff would be levied with 12 percent tax as against the existing 18 percent. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 percent from the existing 28 percent.
The GST was also cut on marine fuel to 5 percent while the same on railway wagons, coaches, roling stock has been increased from 5 percent to 12 percent. Also, tax on outdoor catering has been reduced to 5 percent from existing 18 percent with input tax credit. Exemption from the GST has been given to imports of specified defence goods that are not manufactured in India. Also, the tax on diamond job work has been reduced to 1.5 per cent from 5 per cent earlier. The same on supply of machine job cut to 12 percent from 18 percent.
Further, a uniform GST rate of 12 percent will be levied on woven/non-woven polyethylene bags. The cess levied on top of the maximum 28 percent tax rate on petrol vehicles with the capacity to carry 10-13 persons has been reduced to 1 percent and the same for diesel vehicles has been cut to 3 percent. The tax on almond milk has been set at 18 percent. The GST on slide fasteners (zips) has been reduced to 12 percent from 18 percent earlier. The rate changes shall be made effective from 1 October.