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GST: Theme parks to attract 28%; animal slaughtering, vet clinics exempted

Supply of foods or drinks in outdoor catering will attract a 18% tax rate under GST

Press Trust of India  |  Srinagar 

GST: Theme parks to attract 28%; animal slaughtering, vet clinics exempted

Animal slaughtering and services provided by will be exempt from while visits to and sporting events like will attract a levy of 28 per cent under the new indirect regime kicking in from July 1.

Besides, supply of foods or drinks in outdoor catering, circus shows, classical dances, including folk dance, drama and theatrical performances, will attract a 18 per cent rate under


The Council over the two-day meeting on May 18-19 has decided to retain majority of the exemptions currently available in the service regime in the

According to the list of services which will be subject to the Goods and Services (GST), services provided by tour operators and leasing of aircraft will attract a five per cent levy.

While economy class travel in airplane is likely to get cheaper with 5 per cent tax, a similar lower levy has been decided for transport of passengers by air embarking from or terminating in a regional connectivity scheme airport.

Temporary transfer or permitting use of intellectual property (IP) will attract 12 per cent — the same rate as in respect of permanent transfer of IP.

These include education, healthcare, services provided by way of religious pilgrimages, charitable activities, those provided by the RBI and diplomatic missions situated in India.

Services provided by toll operators and transmission and distribution of electricity and residential house renting would be exempt from the

The exempt services will also include animal slaughtering, banks giving loans or deposits and those provided by the

A senior advocate giving legal services to any person other than a business entity, or a business entity with a turnover of up to Rs 20 lakh in the preceding financing year will be exempt from goods and services

Services of public libraries by way of lending of books, publications and retail packaging and labelling of fruits and vegetables which do not alter the characteristics of the fruit or vegetables are exempt.

The Council has also decided to exempt from the purview of the companyGoods and Services Network(GSTN) set up to build the IT network for the new indirect regime.

As per the list, non-AC restaurants will charge 12 per cent on food bill.

The rate for AC restaurants and thosewith liquor licence will be 18 per cent, while 5-star hotels will charge 28 per cent

Restaurants with Rs 50 lakh or below turnover will gounder the 5 per cent composition scheme.

Work contracts like white washing will be liable for a 12per cent

Entertainment will be merged with service underthe and a composite 28 per cent levy will be charged on cinemaservices as well as gambling and betting at race course.

While the rate proposed for cinema halls is lower than 40to 55 per cent currently, it may not result in a reduction intariffs on cinema tickets as states continue to hold right to levy local charges on them.

Hotels and lodges charging per day tariff of Rs 1,000will be exempt from

Rate for hotels with tariff of Rs1,000 to Rs 2,000 per day would be 12 per cent, while those with Rs 2,500 to Rs 5,000 would be 18 per cent.

for hotels with tariff above Rs 5,000 will be 28 per cent.

Non AC train travel, including in local trains and metro, has been exempt from GST, whileAC train travel will attract 5 per cent service tax, sameas freight levy.

Five per cent rate will also apply on rides taken from cab aggregators like Ola and Uber, which currently pay 6 per cent

Telecom and financial services will be taxedat a standard rate of 18 per cent under

But department estimates thatthe taxincidence on this will be unchanged at 15 per centafter the input credit is taken on equipment by the service providers.

The Council finalised four rates of 5, 12, 18 and28 per cent for services including telecom, insurance, hotelsand restaurants under the biggest reform since theIndependence.

The rates are in line with those finalised for goods. With this, rates of all items except a handful including gold,have been decided ahead of the roll out of the Goods and Services (GST) from July 1.

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