‘Rental taxi services not availing input credit will end up increasing their charges’

Commenting on the revised GST regime, Harmandeep Singh Anand, Managing Director, Jagsons Travels, said, “Premium travel by air will get more expensive by 6% now as the same has been raised from 12 to 18%. Vehicles above 1200cc will be more expensive, as the GST has been raised from 28 to 40%, so rental taxi services not availing input credit will end up increasing the rental cost for such vehicles. Totals to the lower category has been reduced from 12 – 5%. But input tax credit has been disallowed to them. They’ll be availing a lot of input services So, depending on the size and the type of hotel, the implication will be there, and base price will increase for the consumer. The GST input credit will be disallowed for smaller hotels, particularly, which are offering it at 7500 or lower. on the higher side, it remains 18%, so there would be no change on that front. Overall. If you look at the masses, a lot of services have been reduced or made nil tax particularly for health and life insurance, GST has been reduced from 18 to nil. So that gives a lot of relief.”