Get Ready To Pay 12% Tax On Hotel Rooms Below Rs 1000/Day, 5% GST On Hospital Rooms Above Rs 5000

In a latest development that may jolt common men, the Goods and Services Tax (GST) Council has given nod to impose a 5% goods and services tax (GST) sans input tax credit (ITC) on hospitals rooms with rent going above Rs 5000 barring ICU, according to a report in CNBC TV18.

Meanwhile, the Goods and Services Tax (GST) Council yesterday approved to remove several tax exemptions and sought to raise rates for larger number of mass consumption items.

It has decided to give nod to levy a 12% tax on hotel rooms costing below Rs 1000 per day. Till now only hotels above the threshold were charged 12% GST. The Council has also decided to impose a 5% GST without input tax credit on hospital rooms with daily rent above Rs 5000 barring intensive care units or ICUs, added the CNBC TV18 report.

The 2-day GST Council meeting began on June 28 in Chandigarh. It is presided over by Union Finance Minister Nirmala Sitharaman. Finance ministers of states and union territories including senior officers from the union government and states are also attending the meeting in Chandigarh.

The GST Council is also scheduled to discuss several issues such as mechanism for compensating states for revenue loss, tax rate tweaks on some items and hassle-free registration norms for small online suppliers.

Earlier, the Council was also set to clear levying the highest tax of 28% on online games, casinos, and horse racing. According to sources, the Council has now deferred its decision on accepting the report and it implies that the online gaming will continue to remain in the 18% slab.