GST will be consumer-friendly, healthcare and education to be exempted: Finance Minister Arun Jaitley

Jaitley said healthcare and education will remain exempted from the GST, while transport services will be taxed at 5 per cent.

By: Express Web Desk | New Delhi | Updated: May 19, 2017 7:27 pm
GST, gst council, arun jaitley, jammu and kashmir, Finance Minister Arun Jaitley. (Express Photo by Renuka Puri)

With the Goods and Services Tax (GST) set for a July roll-out, Union Finance Minister Arun Jaitley on Friday said the new tax regime will be consumer-friendly besides being an efficient tax system. He also said that healthcare and education will remain exempted from the GST, while transport services will be taxed at 5 per cent.

Addressing reporters after attending a two-day meeting of the GST Council in Srinagar, Jaitley said rates of services will be in four slabs: 5, 12, 18 and 28 per cent. The rates are in alignment with those finalised for goods. With this, rates of all items except a handful including gold, have been decided ahead of the roll out of the GST.

“We are in state of readiness,” Jaitley said, confirming that July 1 will be the rollout date for GST. He also allayed concerns surrounding the new tax regime, saying rates have not been hiked and insisted that under the new system either present rates were maintained or they have been brought down.

Going into details, Jaitley said telecom and financial services will be taxed at a standard rate of 18 per cent while 28 per cent of tax will be levied for race club, betting and cinema halls. He said restaurants with turnover of Rs 50 lakh or below will face 5 per cent tax under the new tax regime while non-AC restaurants to be taxed at 12 per cent. In addition, five per cent GST will also be levied on cab aggregators like Ola and Uber.

Although the proposed rates for cinema halls in lower than 40 to 55 per cent as per current incidence, it may not yield a reduction in tariffs on cinema tickets due to states’ tight grip over local charges.

Meanwhile, Revenue Secretary Hasmukh Adhia said economy and business class air travel will attract 5 and 12 per cent GST, respectively. Talking about the e-commerce giants, he said players like Flipkart, Snapdeal will have to deduct 1 per cent TCS (tax collected at source) while making payments to suppliers.

Touted as the biggest reform in the country’s indirect tax structure, GST will introduce a single tax on supply of goods and services, right from the manufacturer to the consumer. Once GST comes into force, all central-and state-level taxes and levies on all goods and services will be absorbed within an integrated tax having two components: a central GST and a state GST.

The next meeting of the GST Council will be held on June 3.

With PTI inputs 

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  1. T
    T DUTTA
    May 19, 2017 at 8:36 pm
    SOME EMINENT SPORTSMAN CAN BE PRESIDENT---first citizen need not be a politician--he can have LEGAL ADVISORS to advise him on cons utional matters
    Reply
    1. S
      s s nair
      May 19, 2017 at 8:23 pm
      I would request the BJP ministers not to sell foolish dreams to the people. People know now how much they are affected by sel dreams and reducing their income. The latest is hike in stamp duty on gift deeds. The ministers are going on campaign job to high light how they have fooled the people for the last three years.
      Reply
      1. R
        Ram
        May 19, 2017 at 7:33 pm
        Why you were opposing when congress bring this bill? It was not consumer friendly at that time ? Means bill was good but you people did not allow to pass
        Reply
        1. S
          Sankaran Krishnan
          May 19, 2017 at 7:05 pm
          There is no news about the Petrol, Diesel and LPG which affects the common man and why it is not revealed or not decided or afraid of facing the wrath of the people if rates are revealed right now ???
          Reply
          1. G
            Gangu Radhakishan
            May 19, 2017 at 6:55 pm
            GST is ready for implementation. Big reforms are enforced all over the nation in tax structures naming as, one tax one nation. Now government and the society leaders should shape Swachh businessmen, Swachh retail customers, Swachh manufacturers, Swachh suppliers, Swachh government officers and staff across India to make India shine and set as an example to be on brighter side paving way for a developed nation in short time.
            Reply
            1. T
              Truth
              May 19, 2017 at 7:49 pm
              What about the biggest crooks- turning into Swachh politicians?...... Modi is refusing to bring transparency in political funding and Jaitley has allowed unlimited undisclosed donations by Corporates to political parties........Only the common man is constantly being fooled and targeted !
              Reply
            2. J
              jackal
              May 19, 2017 at 5:04 pm
              Ok, we all will comply and pay more taxes tan before. The traders will have to collect all the taxes from the consumer as not complying will be risky to move the goods. But, all this tax amount will end up in corrupt hands and benefit will not come back to tax abiding public. How that lo o p h o l e will be plugged. corruption is a black h o l e, what goes, never comes back.
              Reply
              1. E
                Eve Fernandez
                May 19, 2017 at 5:18 pm
                And it will go to meet the burgeoning ries of government staff. Supporters of BJP will never realise how much they are suffering
                Reply
                1. I
                  Indhiya kudi
                  May 19, 2017 at 6:07 pm
                  When things are streamlined you make hue and cry. Even if you roll on the road, your Fonia will not be trusted by people henceforth. When the comparison comes between total of all taxes like central and states duties of the past and GST on the other side will prove that the people are bene ed.
                  1. T
                    Tushar
                    May 19, 2017 at 8:24 pm
                    Kudiye ..first of all u have no reason to cheer up on this for a reason BJP implemented this ..Same GST was opposing this when Congress tried to implement this ..like GST almost all schemes are copied by this government ...second thing is total rate of tax is increased so there is no benefit for common people through this ..may be it's more burden than earlier one
                    1. I
                      Indhiya kudi
                      May 19, 2017 at 9:21 pm
                      Thushu! Stop your hate for sometime and comment after one year. Who prevented your congress to implement GST? Did not congress prevent this for more than 2 years? But your congress was looting the country for which you will give some execuse or abuse BJP. Chidu was busy looting with Fonia and if sometime left was busy downsizing Modi and BJP which made people angry.
                  2. A
                    ak dev
                    May 19, 2017 at 5:01 pm
                    Jaitly has earned his name in the Historty. Indian will remember his as a great tax reformer.
                    Reply
                    1. E
                      Eve Fernandez
                      May 19, 2017 at 4:21 pm
                      Excellent. Now people will get what they did not bargain for when electing BJP. This will be much more painful to the middle cl than demonetization and other things done by BJP government so far.
                      Reply
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