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Restaurants to impose 5 percent GST from today
Posted on: 15/Nov/2017 3:17:33 PM
Worried about GST on restaurant bills? You may heave a sigh as they are likely to get cheaper with the lowering of tax rate to 5 percent from the earlier 12 percent and 18 percent for non-AC restaurants and AC restaurants respectively. This has come to effect from today.
At present, the GST charges on air-conditioned restaurants is 18 percent, and on non-AC restaurants is 12 percent.
The GST council says the Input Tax Credit (ITC) to customers is not passed, and hence the ITC facility is withdrawn. Hence, 5 percent tax is imposed towards restaurants that are with and without AC.
The per-day room tariff in starred hotels is Rs 7,500. A GST of 18 percent will be levied as GST, but ITC is allowed too. For restaurants that charge lesser than Rs 7500 as room tariff, the GST will be reduced to 5 percent and no ITC shall be applicable.
