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Input tax credit: Many restaurant owners have indicated that the move may drive prices up, courtesy withdrawall of input tax credit. Under input tax credit, businesses can claim an offset on the tax paid on inputs against the tax paid to the government. But, now the Council has done away with the tax credit on food items used as raw material.
- You won’t need to burn a hole in your pocket in order to dine at fancy AC restaurants. From 18 per cent tax to five per cent, you will be saving 13 percentage points tax on your food bill.
- Similarly, at non-AC restaurants, you will be saving 7 percentage points tax on your bill as the same has been slashed from 12 per cent to five per cent.
Want to just chill and order food at home instead? No worries as delivery apps such as Zomato and Swiggy will be delivering food from restaurants that will charge you the revised tax rates i.e five per cent.