Eating out at AC and Non AC restaurants cheaper from today

Henrietta Strickland
November 15, 2017

Eating out and ordering takeaways at restaurants all over the country will become cheaper from today as only 5 per cent tax will be levied (if ordered from AC restaurants) and 12 percent (non-ac restaurants) from the customers.

"Many daily-use FMCG products are set to become cheaper as producers have chose to pass on benefits to the consumers", Care Ratings said, according to The New Indian Express.

Those restaurants in lodgings charging not as much as Rs 7,500 room tax will tax five percent GST however won't get ITC. No stresses as conveyance applications, such as, Zomato and Swiggy will convey food from restaurants that will tax you the updated tax rates i.e five percent. Last week, the GST council lowered the tax rate of restaurants to a uniform 5 per cent from 12 per cent on non-AC restaurants and 18 per cent on air-conditioned ones. The GST Council, in its 23rd meeting in Guwahati, had slashed the tax rate from 18 per cent to just 5 per cent.

Vinod Gulati, managing director, Gulati Restaurants, in Delhi is looking forward to more footfalls with his popular buffet at his restaurant in Pandara Road Market costing Rs 865 (with 18 percent GST) to be now available to diners at Rs 765 from 15 November. The outdoor catering will also attract 18 per cent GST with ITC benefits.

Welcoming the move by the GST Council, the apex industry body said it had sought bringing down GST rate on restaurants to 12 per cent with input tax credit or at 5 per cent without input tax credit.

The top tax rate is now restricted to luxury and demerit goods like pan masala, aerated water and beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, ACs, dish washing machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yacht.

Among mass consumption items watches, blade, stove, mattresses have been reduced to 18 percent from 28 percent. "Six goods have come down from the 18 percent slab to 5 percent, 8 items have come down from 12 percent to 5 percent and 6 items from 5 percent to zero tax", Jaitley said. "Ajay Bhushan Pandey, the CEO of Unique Identification Authority of India (UIDAI) and interim chairman of the GST Network, is heading a committee to simplify return filing procedures and several other related aspects", SuMo said.The state finance minister also said there were 2.23 lakh dealers registered under GST in Bihar and 32,864 of them come under the composite scheme. It decided that filing GSTR 3B would continuing till March 31, 2018.

Other reports by Click Lancashire

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