GST updates

GST council has slashed rates of the various products under 28% slab. Now, the restaurants eating out has become cheaper after the fall down of 5% taxes. Asper the reports, the ICRA welcomed the decision of cut down of 5 percent GST on all the restaurants, Non-Ac and air-conditioned will be the positive outcome for the restaurant’s price. Last week, GST council has come over with another twist in GST rates. As per the reports, the council announced to cut down the rates of restaurants to uniform taxes 5% from 12% on the Non-Ac restaurants; 18% on the air-conditioned.

The revision in goods and services tax rates for the restaurants will have the positive impact on the bringing down dining-out cost. According to the reports, the Vice President of ICRA and sector head Pavethre Ponniah said that supporting the revenues and footfalls at time of organised restaurants are struggling to grow.

However, presently the twelve percent GST is levied on food bill of non-ac restaurants and 18% on ac restaurants. And the restaurants which charged Rs 7,500 or more per day will now be levied with 18% goods and services tax. And hotels those charging less than Rs 7,500 will charge 5 percent GST. The goods and services tax implement in July this year has somehow faced various ups and downs.