In good news, the government has considered the case of scrapping the GST rate on distinction between air-conditioned (AC) and non-air-conditioned restaurants.
According to media reports, the government had appointed a GST panel to revisit Goods and Services Tax (GST) rates for restaurants. The 5-member panel has group of ministers, and under Assam Finance Minister Himanta Biswa Sarma, has agreed to back reduction in the levy on restaurants from 18 per cent to 12 per cent and withdrawal of the input tax credit facility available to eateries.
The GST panel, set up by the GST Council on Sunday, claimed that there is a case for doing away with the distinction between AC and non-AC restaurants. A source told The Mint, “There is a consensus that there is no need for a distinction between AC and non-AC restaurants. It can only create confusion.”
The panel will again hold a meeting on October 29, to discuss the issues before placing it before GST Council. The final decision will be taken by Finance Minister Arun Jaitley in November 9 GST Council meeting in Guwahati.
The GST panel includes Assam Finance Minister Himanta Biswa Sarma, Jammu and Kashmir Finance Minister Haseeb Drabu, Bihar Deputy Chief Minister Sushil Kumar Modi, Chhattisgarh Commercial Taxes Minister Amar Agrawal, and Punjab Finance Minister Manpreet Singh Badal.
