GST rates: What is cheaper, what is costlier, a definitive guide

Five-star hotels and rooms with a price tag of over Rs 5000 a night may attract 28% GST.

The Goods and Services Tax Council headed by Union Finance Minister Arun Jaitley finalised the tax rates for 1,211 items on Thursday. A majority of commodities were kept at 18 percent while some at 28%.

Daily use products

Daily use products like hair oil, soaps , toothpaste, mineral water, tissues will be charged with 18 per cent instead of present 22-24 per cent tax.

Cigarettes, Pan masala, aerated, water:

Cigarettes, pan masala and gutkha will all get more expensive. Pan masala will attract a 60% cess, aerated water and lemonade a 12% cess, unmanufactured tobacco 71% while Cigarettes will attract 5% cess.

Automobiles, motorcycles, aircraft

Automobiles, motorcycles, aircraft for personal use will attract the highest under GST system which is 28 % tax. Small petrol cars with an engine capacity of less than 1200 cc will attract 1% cess. Those with a diesel engine capacity of less than 1500 cc will attract 3% cess. Big cars with an engine capacity more than 1500 cc, and SUVs that are more than 4m long and engine capacity of over 1500 cc, will attract a cess of 15%. Similarly, high-end motorcycles fall under 3% cess and 28% GST rate.

Movies at multiplex, restaurants:

Watching movies at multiplex or eating out at air-conditioned restaurants is likely to attract a higher tax slab compared to common services. Restaurants in 5-star hotels will face the highest tax slab of 28 per cent

Mobile bills, insurance premiums, banking

Mobile bills, insurance premiums, banking charges, internet, wifi and DTH services are likely to get costlier. Meanwhile, mobile users will have to shell out an extra money if their monthly phone bill is Rs 1,000 with the government imposing a goods & services tax of 18% on telecom services.

Hotels, casinos:

Hotels and lodges will a tariff below Rs 1000 a day will be exempted from GST, while those with a room rate of between Rs 1000-Rs 2,500 will be taxed at 12 percent. Five star and luxury hotels will be taxed at 28 percent. .Services related to gambling, race club betting and cinema halls will also be taxed at 28 percent.

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