Eating out in AC restaurants may soon get cheaper, GST could be cut to 12%
GST panel mulls paring rate on such eateries to 12% from 18%, bring them at par with non-AC ones; Five-star and above to continue to attract 18%
 "An employee sets a table inside a restaurant at the Crown Plaza hotel, run by the InterContinental Hotels Group (IHG). Photo: Reuters")
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An employee sets a table inside a restaurant at the Crown Plaza hotel, run by the InterContinental Hotels Group (IHG). Photo: Reuters
A Goods and Services Tax panel is considering reducing the GST rate on air-.conditioned (AC) restaurants to 12 per cent from 18 per cent which will bring them at par with non-AC restaurants. The council may also withdraw input tax credit facility available to eateries. However, the GST rate on AC restaurants located in five star and above rated hotels will remain 18 per cent.
According to a Times of India report, the proposed change in the tax rate follows complaints that restaurants were pocketing the benefit of input tax credit for taxes paid by suppliers and the tax burden on those eating out was high. The withdrawal of input tax credit will make it a flat tax structure, with many suggesting that it will end GST on restaurants in its purest form.
According to a Times of India report, the proposed change in the tax rate follows complaints that restaurants were pocketing the benefit of input tax credit for taxes paid by suppliers and the tax burden on those eating out was high. The withdrawal of input tax credit will make it a flat tax structure, with many suggesting that it will end GST on restaurants in its purest form.