Bhubaneswar, 19/05/2017 ( Odisha Samachar / Abhisek Mohanty )- : The Goods & Service Tax (GST) council meeting chaired by Union Finance Minister Arun Jaitley on Friday finalized four tax rates for services including insurance, telecoms, restaurants, hotels and financial services.
At the meeting, it was decided that transport services will be taxed at 5 per cent, while telecoms, banking and financial services will be taxed at 18 per cent. The air-conditioned hotels serving liquor will attract 18 per cent tax, whereas non air-conditioned restaurants will
fall in the 18 per cent tax slab under the GST system.
The healthcare and education sectors will remain exempted from the GST, while railway, air and road transport will fall in the 5 per cent tax slab. Similarly, goods such as tea, coffee, groundnut, fish, bio-gas plant, windmills, coal and kerosene lantern will also attract
5 per cent tax.
Apart from those, tractors, bicycles, mobile phones, tooth powder, fountain pink, feeding bottles, incense sticks, contact lenses, spectacle lenses, sports items, umbrellas, pencils and colouring books will be under 12 per cent tax rate.
However, the tax rate on gold is not yet finalized. As per schedule, the council will meet again on June 3.