The GST Council on Saturday fixed a 5 per cent tax rate on small hotels and restaurants and approved draft of key supporting legislations to enable rollout of the new indirect tax regime from July 1.
The all-powerful Council approved the final draft of Central GST (C-GST) and Integrated GST (I-GST) and will take up for approval the State-GST (S-GST) and Union Territory-GST (UT-GST) laws at its next meeting on March 16.
The C-GST, which will give powers to Centre to levy GST on goods and services after union levies like excise and service tax are subsumed, and I-GST that is to be levied on inter-state supplies, will go to Parliament for approval in the second half of the Budget session beginning March 9, Finance Minister Arun Jaitley said.
The S-GST, which will allow States to levy the tax after VAT and other State levies are subsumed in the GST, will have to be passed by each of the State legislative Assemblies. UT-GST will also go to Parliament for approval.