37TH GST COUNSIL MITTING-

1. HOSPITALITY AND TOURISM SECTOR:

Hotels having room charges per day -
Rs 1000 and less ------ GST NIL
Rs 1001 to 7500------ Gst 12% reduced from 18%
Rs 7501 and above ------ Gst 18% slashed from 28%

 Tax on caffeinated beverages raised to 28% from 18% + additional 12% cess will be
imposed over GST. Caffeinated beverages such as thumps Up charged and redbull
GST rate increased from 18% to 40 %.
 Tax on outdoor catering on premises having daily accommodation charge of less
than Rs7501 has been reduced from 18% without ITC to 5% with ITC (input tax
credit).

2) JOB WORK SERVICE:

 GST on machine job work like in engineering industry reduced from 18 to 12% except bus
body building will remain 18%.

CORPORATE TAX:

 The biggest source of revenue for GOI comes from corporation tax, i.e, 21%.
 Govt has slashed corporate tax rate to 22% from 30% for old companies and for new
manufacturing firm it has been reduced from 25 to 15%.
 By this move GOI will be losing 1.45 trillion rupees per year.
 As in our country some cess and surcharge is being applied on corporate tax, so after
applying it: EFFECIVE TAX RATE WILL BE 25.17%
 For new manufacturing companies also, after including surcharge:
EFFECTIVE TAX RATE WILL BE 17%

Q) Why government did this?

Ans – To take advantage of the ongoing trade war between china and US, as of till date many US
companies have shifted their business (manufacturing unit) from china after the threat from US
president of worsening trade war but very few of them came to India (like apple) but most of them
shifted their manufacturing units to ASEAN countries, like Singapore, Malaysia ,south Korea etc. bcz
of low corporation tax. But now, as the corporation tax for new manufacturing companies decreased
to 17 %, which is even lower than countries like Malaysia (24%), Vietnam (20%), Thailand (20%), so
now India has provided a platform to these companies to come and do business in India, to setup
their manufacturing base in here, which will help India to boost its economy, employment
opportunity etc. Growth rate boost.

 Sensex grew to 38014.6 point highest in last 10yrs.

 Foreign portfolio Investor tax has been rolled back by India.
 No tax will be applied on equity share sold by companies and for listed companies no tax on
buyback of shares, which is done by companies to provide benefit to investors.