New Delhi: The central government has suggested changes in the Goods and Services Tax (GST) rates. According to sources from CNBC TV18, these changes will be discussed in the upcoming GST Council meeting, which will be held on 3rd and 4th September in New Delhi. If approved, the new GST rates could make hotel stays, beauty services, and low-cost cinema tickets cheaper. However, gambling-related services like casinos, betting, and race clubs might become more expensive.
Hotels, Beauty Services, and Cheap Movie Tickets May Get Relief
The proposal includes lowering GST on hotel stays costing Rs 7,500 or less per night from 12 percent (with ITC) to 5 percent (without ITC). Similarly, beauty and physical well-being services (like spas or salons) could see a reduction in GST from 18 percent (with ITC) to 5 percent (without ITC). For cinema lovers, tickets for cinematograph films priced below Rs 100 may see GST drop from 12 percent to 5 percent, while still keeping input tax credit (ITC).
Higher GST Proposed for Betting and Gambling Services
On the other hand, the government has proposed to increase GST on services like casinos, race clubs, IPL matches, betting, gambling, and horse racing. Currently, these services are taxed at 28 percent with ITC, but the new proposal suggests raising this to 40 percent with ITC. This would make all such gambling-related services significantly more expensive.
Final Decision in September
All these suggestions will be discussed in the GST Council meeting. A final decision will be taken there. If these proposals are approved, people can expect savings on hotel bookings, beauty services, and cheap movie tickets. At the same time, those involved in betting or gambling-related activities may have to pay more.
