GST on hotels reduced, rate on caffeinated beverages hiked

The GST Council on Friday approved a nil rate for hotel tariffs below ₹1,000 while the rate on hotel tariffs from ₹1,000-7,500 has been reduced from 18% to 12%. Rooms with tariffs beyond ₹7,500 will now attract 18% GST compared to 28% earlier. The GST rate on caffeinated beverages has been increased to 28%, along with a 12% compensation cess.