5% GST at restaurants from today: Why your food bill may still not change

AC restaurants and non-AC restaurants will charge 5% GST, down from 18% and 12% respectively

Eating out at restaurants may get cheaper as GST Council's decision to lower the tax rate to a uniform five per cent from 12 per cent on non-AC restaurants and 18 per cent on air-conditioned ones comes into effect on Wednesday.

Currently, air-conditioned restaurants levy a charge of 18 per cent on food bill and non-AC restaurants levy 12 per cent tax.

The council said the restaurants did not pass on the input tax credit (ITC) to customers and so the ITC facility is being withdrawn and