Decisions taken at 37th GST Council meet at Goa on 20.09.2019 (with specific reference to Hotel)

GST Council in the 37th meeting held on 20th September, 2019 (Friday) at Goa inter-alia, decided to lower GST rates on hotel tariff, outdoor catering and other miscellaneous items.

(A) GST Rates on hotel room tariffs

A comparative analysis of the rates earlier and rates proposed is as follows:

S.No. Transaction Value per Unit (Rs) per day Present GST rate Proposed GST rates w.e.f. 01.10.2019
1. Rs. 1000 and less Nil Nil
2. Rs. 1,001-2,500 12% 12%
3. Rs. 2,501-7,500 18% 12%
4. Rs 7,501 and more 28% 18%

(B) GST Rate on outdoor catering

S.No. Particulars Present GST rate Proposed GST rates w.e.f. 01.10.2019
1. Institutions other than in premises with daily room tariff of Rs 7,500 or more 18% with ITC 5% without ITC
2. Catering in premises with daily tariff of unit of accommodation being Rs. 7501 and above 18% with ITC 18% with ITC

(C) GST Rate on caffeinated drinks (including energy drinks)

  • Increased to 28 per cent from 18 per cent.
  • Additional 12 per cent compensation cess would also be imposed on such beverages.
Present GST rate Proposed GST rate w.e.f. 01.10.2019
GST rate Compensation Cess Total
18 percent 28 percent 12 percent 40 percent

(D) GST rate reduction on other items

Item Present GST Rate Proposed GST rate w.e.f 01.10.2019
Dried tamarind 5% Nil
Plates and cups made up of leaves / flowers / bark 5% Nil

(E) Other Miscellaneous changes

  • Exemption to Fishmeal for the period 01.07.17 to 30.09.19. There were doubts as regards taxability of fishmeal in view of the interpretational issues. However, any tax collected for this period shall be required to be deposited.
  • Mere heating of leguminous vegetables (gram/lentil) for removing moisture, or to soften and puff it or removing the skin, and not subjecting to any other processing or addition of any other ingredients (salt, oil etc.) would be classified under HSN Code 0713.
  • Almond milk is classifiable under HSN code 22029990 and attracts GST rate of 18%.

(F) New return forms

 It is proposed to defer the implementation of new return system from April, 2020.

(Note: The GST rate changes shall be made effective with effect from 1st October, 2019 after being notified)

Also Read relevant Press Releases and Notifications

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