Eating out gets cheaper,GST on Restaurants reduced by 13%

Restaurant Picture

Taxes are always there to interfere with our fine dining experience.Earlier there were different types of taxes which we used to see in utter confusion and then came the compiled version ‘GST’ which proved equally painful. A 12% (for Non-AC) and 18%(AC) slit in the pocket did hurt us, paying 180 Rs on 1000 Rs spent or 360 on 2000 spent is indeed painful.Now relaxing our dining experience the GST on restaurants has been slashed by 13% making it a uniform 5% tax irrespective of the restaurant type (AC or Non-AC).This decision was taken at the 23rd meeting of the ‘GST council meet’ held in Guwahati.The thing here to note is that restaurant won’t get the input tax facility, input tax credit means at the time of paying the tax on output(sales), you can deduct the tax paid on input(raw material, rent etc).

Finance Minister Arun Jaitley said, that the council was of the view that most restaurants did not pass on the benefits of input tax credit to customers by reducing prices after GST was implemented.

Now there still is a little catch about how restaurants price their menu after the removal of input tax benefit but there will surely some decrement in the restaurant bill. These changes will be effective from 15th November.

Source-NDTV

 

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