The GST Council fixed the
rate of tax for goods and services under the new indirect tax regime. With
regard to the GST on services, the council broadly agreed on 4 tax brackets
having 5%, 12%, 18% and 28% of tax instead of the current uniform rate.
Finance Minister Arun
Jaitley said that all services have been fitted into four different rates,
which are 5%, 12%, the standard 18% and the luxury rate of 28%, Transport
services (Railways, air transport) will be under the 5% category since the main
input used for such services are petroleum which is outside the GST Net. Hotels
and lodges charging rent below Rs. 1000 are exempted under the GST.