GST for services: Health, edu stay exempt; others taxed at 5, 12, 18, 28%

Transport to be taxed at 5%; restaurants with turnover of Rs 50 lakh or below will face 5% tax

Govt has finalised four tax rates that will apply to services including telecoms, insurance, hotels and restaurants under a new sales tax which should be rolled out on July 1, Finance Minister Arun Jaitley said on Friday.

The tax rates will be 5%, 12%, 18% and 28% - in line with those applying to goods. Jaitley added that health care and education would remain exempted under the landmark GST.

Telecoms and financial services will be taxed at a standard rate of 18% while transport services will be taxed at 5%, Jaitley told reporters after a meeting of the GST Council in Srinagar.