Eating Out At Restaurants Could Become Cheaper, GST Rate Under Review
A panel is reviewing the 18% GST tax rate that you currently pay for eating out at AC restaurants.
NDTV Profit Team | Last Updated: October 06, 2017 22:50 (IST) NDTV Profit Team
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Under the current GST structure, items are slotted under tax rates of 5%, 12%, 18% and 28%.
A panel is reviewing the 18 per cent GST tax rate that you currently pay for eating out at AC restaurants. This was said by Finance Minister Arun Jaitley today, who also heads the GST Council. Food served at restaurants attract tax at two rates under GST - 12 per cent and 18 per cent - depending on whether it is an AC restaurant or whether it serves alcohol.
Restaurants with partial or full air-conditioning or those serving liquor attract a GST rate of 18 per cent. Restaurants with no air-conditioning in any part thereof and not serving liquor fall in the 12 per cent tax bracket. The GST rates of 12 per cent and 18 per cent include both CGST (Central GST) and SGST (State GST). For the GST tax rate of 12 per cent, it is split at 6 per cent Central GST (which goes to the Centre's kitty) and 6 per cent State GST (which goes to the state's kitty). So happens for the 18 per cent GST rate, which was split at 9 per cent Central GST and 9 per cent State GST.
Under the current GST structure, items are slotted under tax rates of 5, 12, 18 and 28 per cent. An additional GST compensation cess is also levied on certain luxury products and demerit goods such as tobacco and pan masala. Certain essential goods are kept under nil or zero per cent GST rate for the benefit of masses.
Finance Minister Arun Jaitley also said that the rules for small businesses and exporters would be eased under the Goods and Services Tax (GST), a move that could provide relief to thousands of small firms.
Small businesses would be allowed to file tax returns once a quarter instead of monthly returns, Mr Jaitley said following the 22nd meeting of the GST Council.
GST, which was launched in July, is a landmark reform which turned India's 29 states into a single market for the first time.
Mr Jaitley said on Friday that the rules for small businesses and exporters would be eased under the GST, a move that could provide relief to thousands of small firms.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
