Animal slaughtering and services provided by veterinary clinics will be exempt from GST while visits to theme parks and sporting events like IPl will attract a levy of 28 per cent under the new indirect tax regime kicking in from July 1. Besides, supply of foods or drinks in outdoor catering, circus shows, classical dances, including folk dance, drama and theatrical performances, will attract a 18 per cent tax rate under GST.
The GST Council over the two-day meeting on May 18-19 has decided to retain majority of the exemptions currently available in the service tax regime in the GST. As per the list of services which will be subject to the Goods and Services Tax (GST), services provided by tour operators and leasing of aircraft will attract a 5 per cent levy. While economy class travel in airplane is likely to get cheaper with 5 per cent tax, a similar lower levy has been decided for transport of passengers by air embarking from or terminating in a regional connectivity scheme airport.
Temporary transfer or permitting use of intellectual property (IP) will attract 12 per cent GST-- the same rate as in respect of permanent transfer of IP. These include education, healthcare, services provided by way of religious pilgrimages, charitable activities, those provided by the RBI and diplomatic missions situated in India. Services provided by toll operators and transmission and distribution of electricity and residential house renting would be exempt from the GST.