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The tax rates will be 5, 12, 18 and 28 percent - in line with those applying to goods. Telecoms and financial services will be taxed at a standard rate of 18% while transport services will be taxed at 5%, Jaitley told reporters after a meeting of the GST Council in Srinagar.
The tax rate on gold has not been finalised yet and the Council will meet again on June 3.
The new tax rates would affect everything from your restaurant visits, movie dates, visits to the salon and even your phone bills. Rail, air and road transport will fall in the 5 percent tax slab. Non air-conditioned restaurants will attract a tax levy of 12 per cent whereas air-conditioned restaurants will have fall in the 18 per cent tax bracket. Hotels with tariff between Rs 2,500 to Rs 5,000 will attract a GST of 18 per cent, whereas hotels with tariff of above Rs 5,000 will fall under the 28 per cent tax slab. However, hotels with tariff under Rs 1,000 are exempt from the GST regime.
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