GST council finalises tax on services; exempts edu, healthcare

Srinagar: The all-powerful GST Council today finalised tax rates for services under the Goods and Service Tax (GST) regime, scheduled to kick-in from July 1.

Healthcare and education would be exempt from GST.

Kerala Finance Minister Thomas Issac said there will be four rates for services at 5, 12, 18 and 28 per cent, similar to tax slabs for goods. The tax rate on gold has not been finalised yet, he said, adding that the Council will meet again on June 3.

Restaurants with turnover of Rs 50 lakh or below to face 5% tax under GST; non-AC restaurant at 12%, AC restaurants and those with liquor licence to charge 18% GST; 5-star hotels to levy 28%; hotels with tariff of Rs 1,000-2,500 to pay 12% rate. Telecom, financial services to attract GST of 18 per cent; 28% tax for race club, betting and cinema halls.