Highlights: GST Council announces steps to help tourism, trade

GST council meeting Live updates: All eyes are on GST council's meeting in Goa after the government announced slashing corporate taxes.

The Goods and Services Tax (GST) council meeting in Goa concluded hours after after the government slashed corporate taxes, aiming to reviving private investment and lifting growth from a six-year low that has caused job losses and fueled discontent in the countryside.

Domestic companies will pay 22 per cent tax on their income from April 1, 2019, versus 30 per cent previously, Finance Minister Nirmala Sitharaman said Friday. The effective rate, including all additional levies, will be 25.2% and applicable on companies that aren't availing any incentives or exemptions.

Sitharaman's announcements and the GST council's meeting comes at a time when India's annual economic growth fell to a 25-quarter low of 5% in April-June period.

Here are live updates on the latest GST decisions and reactions of the latest round of stimulus.

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10:41 PM

'Spurt for hospitality industry'

GST rate cut on hotel rooms " adds great spurt and momentum to the hospitality industry and creates a positive sentiment that ensures more vigour and strength to Destination India," says Nakul Anand, chairman of Federation of Associations in Indian Tourism & Hospitality (FAITH), according to PTI.

10:40 PM

Hotel industry cheers GST rate cut

Hoteliers welcome GST rate cut on rooms. Finance Minister Nirmala Sitharaman has announced zero tax for hotels room tariffs of up to Rs 1,000 per night. Hotels charging Rs 1,001 to Rs 7,500 per night will pay 12 per cent tax as against the existing 18 per cent.

9:13 PM

GST compensation cess on petrol, diesel vehicles

Compensation cess on petrol vehicles with 10-13 person capacity reduced to 1%, reports ET Now TV channel. Compensation cess on diesel vehicles with 10-13 person capacity reduced to 3%

9:11 PM

Polyethylene bags

Uniform GST rate of 12% for woven/non-woven polyethylene bags

 

9:10 PM

Defence goods

Defence goods not being manufactured indigenously has been exempted from GST/IGST

9:04 PM

Hotel room rates to have three GST slabs

Hotel rooms with Rs 1,000 or less tariff will have nil GST. From Rs 1,001 to Rs 7,500 will have 12% GST and above Rs 7501 will be 18%

8:56 PM

Jewellery

Jewellery exports to now attract zero GST

8:55 PM

Aerated drinks

Aerated drink manufacturers shall no longer get compensation scheme

8:53 PM

GST rate on railway coaches

GST rate on railway coaches and wagons raised to 12% from 5%

8:52 PM

Caffeinated drinks to cost more

GST rate on caffeinated drinks raised from 18% to 28%, plus there will be an additional cess of 12%

8:49 PM

Exports

GST council has taken the view that exports must be promoted in a big way: Nirmala Sitharaman

8:47 PM

Precious and semi-precious stones

GST rate cut on precious and semi-precious stones: Nirmala Sitharaman

8:46 PM

Meeting concludes

GST council meeting has concluded. Some decisions are linked to promotion of tourism: Finance Minister Nirmala Sitharaman

6:14 PM

Don't roll back GST exemption: Tamil Nadu

Tamil Nadu's fisheries minister D Jayakumar opposed a proposal for gradual removal of GST exemption on some products, saying it would affect small traders and farmers. Jayakumar also urged the council not to bring petroleum and electricity under GST.

6:10 PM

Tamil Nadu lists demands

Tamil Nadu has told the GST Council that a decision on restructuring rates should be taken based on the revenue generated and economic conditions.