FinoPulse #005 · MAY 15, 2026
GST Updates: What You Need to Know
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GST Updates: What You Need to Know
Imagine you’re running a small business, and you’re trying to stay on top of the latest GST updates. You’ve heard rumors of new tax rates, but you’re not sure what they mean for your business. That’s where we come in.
As per the GST Council’s recent meeting, new tax rates will be applicable from June 1, 2026.
The new tax rates will have a significant impact on your business, especially if you’re in the hospitality or manufacturing sector. You’ll need to adjust your pricing strategy to stay competitive.
For example, if you’re a hotel owner, you’ll need to charge GST on your room bookings. This could increase your revenue, but it also means you’ll need to comply with new tax regulations.
Let’s say you’re the owner of a hotel in Mumbai, and you’re currently charging Rs 5,000 per night for a room. With the new tax rates, you’ll need to charge an additional 12% GST, which would be Rs 600. This means your total revenue per night would be Rs 5,600.
Our experts recommend that you review your pricing strategy and comply with the new tax regulations to avoid any penalties.
- Review your pricing strategy
- Comply with new tax regulations
- Consult with a tax expert
The GST Council has decided to remove exemptions on certain services, including hotel accommodations. This means that you’ll need to charge GST on these services, which could increase your revenue.
This change applies to all businesses that provide exempt services, and it’s effective from June 1, 2026. Some common mistakes to avoid include not charging GST on exempt services, not complying with new tax regulations, and not reviewing your pricing strategy.
New GST rates for certain goods and services effective May 1, 2026. This means that you’ll need to adjust your pricing strategy to stay competitive.
Rule 42, Rule 43 and the Annual True: A large pharmaceutical company in Ahmedabad had been claiming full ITC on its machinery, but it was recently discovered that they were not eligible for the full amount.
Why Skipping This Step Is Costing You: Every month, thousands of businesses across India claim input tax credit (ITC) without reconciling their GSTR-2B.
What is the new GST rate for hotel accommodations?
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