The all-powerful GST Council has decided to slash the rate on hotel room tariffs, Union Finance Minister Nirmala Sitharaman has announced.
For hotels, there will be nil tax for those with tariffs of up to Rs 1,000 per night. Those charging Rs 1,001 to Rs 7,500 per night, the levied room tariff will be 12 per cent tax as against the present 18 per cent.
Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18 per cent from 28 per cent. Also, tax on outdoor catering has been reduced to 5 per cent from the existing 18 per cent with input tax credit, the Finance Minister said after a meeting of the GST council on Friday.
But on a bitter note, the GST on caffeinated beverages has been hiked to 28 per cent plus an additional cess of 12 per cent as against the current rate of 18 per cent.