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Stays at five-star hotels could also get costlier. The GST rate of 18 percent will apply on hotel rooms with tariff ranging between Rs. 2,500 and Rs. 7,500. The highest tax rate of 28 percent is assigned to tariffs of Rs. 7,500 and above. Currently, domestic hospitality industry pays tax in the range of 18-25 per cent, which includes luxury tax and service tax.
Hotels and lodges that charge Rs. 1,000 a day or less are exempted from the GST, while those charging from Rs. 1,000 to Rs. 2,500 will be taxed at 12 percent.
Eating out could get cheaper in some cases. Under GST, service tax and value-added tax (VAT) charged at restaurants will be subsumed. Air-conditioned restaurants will attract GST at 18 percent on food bill. Non-AC restaurants will attract a 12 percent GST. However, restaurants which have both AC and non-AC seating options will be charging service tax as per AC restaurants at 18 percent.while dining at restaurants there are basically two rates of tax that are charged over and above the food value: value added tax (12.5 percent to 14.5 percent in different states, service Tax (5.6 per cent) on AC restaurants, Krishi Kalyan cess (0.2 per cent) and Swachh Bharat cess (0.2 percent).
Ola and Uber rides could get cheaper. Transport services will be taxed at 5 percent. This rate will apply to cab aggregators like Ola and Uber as well as those that currently pay a 6 percent tax.Train passengers may have to pay a bit more for AC and first class travel. Though non-AC train travel will be exempt from GST, on AC and first class tickets, the tax rate will get hiked from 4.5 percent to 5 percent.
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