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IST | Source: Moneycontrol.com

GST Council Meeting: Tax rate on restaurants slashed to 5% from 18%, says Jaitley

Tax rate for AC and non-AC restaurants, except those in five-star hotels. has been slashed to 5%.

  • Nov 10, 08:08 PM (IST)

    GST Relief: Key Highlights
    AC & Non_AC restaurants will now come under the 5% tax bracket, without input tax credit 
    Hotels with tariffs above Rs 7,500 per night and outdoor catering will levy 18% GST 
    Tax rates on 178 items slashed to 18%
    GST on marble, flooring, detergent,  toiletries reduced to 18%
    GST on wet grinders, armoured vehicles reduced to 12% from 28%
    The new rates will be effective from November 15
     

  • Nov 10, 07:27 PM (IST)

    GST relief doesn't end there. BIG NEWS. The Finance Minister has confirmed that all restaurants (AC & non-AC) will come under the 5 percent tax bracket, without Input Tax Credit (ITC). He said the decision had to be taken as the restaurants were not passing ITC benefits to customers. Customers were burdened as they were charging GST on previous rates.

  • Nov 10, 08:36 PM (IST)

    Tax experts tell CNBC TV-18 that the outcome of the 23rd GST Council Meet was almost like a 'mini-Budget' decision. The revised rates bring much cheer to the consumers.

  • Nov 10, 08:34 PM (IST)
  • Nov 10, 08:24 PM (IST)

    Congress takes credit for the GST Council Meet decision| Congress Charan Sigh Sapra, a Congress spokesperson, tells CNBC TV-18 that Congress appreciates these moves because it is they who pushed for these decisions to come to force.

  • Nov 10, 08:22 PM (IST)
  • Nov 10, 08:19 PM (IST)
  • Nov 10, 08:02 PM (IST)

    Jaitley spells some numbers, says overall tax collection in first 3 months of GST around Rs 93,000-95,000 crore. Only GSTR-1, GSTR-3B forms need to be filed; GSTR-2 & 3 need not be filed as of now, he adds.

  • Nov 10, 07:53 PM (IST)
  • Nov 10, 07:51 PM (IST)

    Late filing penalty for 'nil returns' cut to Rs 20/day from Rs 200/day. Late filing penalty without ‘nil returns’ cut Rs 50/day from Rs 200/day.

  • Nov 10, 07:48 PM (IST)

    Adhia says taxpayers with turnover less than Rs 1 crore should file invoices every quarter. Taxpayers with turnover above Rs 1 cr should file invoices every month, he adds.

  • Nov 10, 07:44 PM (IST)

    Adhia says the Council may have to take another look at forms for GSTR 1, GSTR 2 & GSTR 3. All taxpayers to file only GSTR-1 in current year, he adds.

  • Nov 10, 07:42 PM (IST)
  • Nov 10, 07:40 PM (IST)

    It's Finance Secretary Hasmukh Adhia's turn to speak now. He says returns filing process to be made simpler by making it interactive.

  • Nov 10, 07:39 PM (IST)

    GST on marble, flooring, detergent, toiletries reduced to 18%.

    GST on wet grinders, armoured vehicles reduced to 12% from 28%.

  • Nov 10, 07:33 PM (IST)
  • Nov 10, 07:31 PM (IST)

    Hotels with tarriffs over Rs 7,500 per night, however, won't fall under the 5 percent bracket. They would be taxed at 18%, as per the current norms. Other items like outdoor catering will  get a levy of 18%, Jaitley said.

  • Nov 10, 07:21 PM (IST)

    178 items moved to 18% tax slab: Jaitley

    Jaitley has confirmed that 178 items have been moved from the 28 percent to the 18 percent slab. New rates will be effective November 15. Items from construction such as marble, flooring will be included in the 18 percent tax slab. Only 50 goods will stay in the highest slab of 28%.  

  • Nov 10, 07:19 PM (IST)
  • Nov 10, 07:19 PM (IST)

    Finance Minister Arun Jaitley  is addressing the media now. Initially, GST rates were fixed keeping in mind previous tax structure which comprised VAT and excise. The GST Council has systematically looked at the 28 percent GST slab over the last three months and accordingly rates have been cut. Just the demerit goods will stay in the 28 percent slab, he said.

  • Nov 10, 07:16 PM (IST)

    Finance Minister Arun Jaitley will address a press conference in Guwahati shortly to inform about the changes to GST rate structure. Sweeping changes such as simpler procedures, a single return filing form for SMEs are likely to have been approved.

  • Nov 10, 07:05 PM (IST)

    BREAKING | Eating out will get cheaper as the GST Council is likely to slash the tax rate on restaurants to 5 percent, without input tax credit, sources told Moneycontrol. Currently, an 18 percent GST is levied on AC restaurants, while non-AC restaurants charge 12 percent.

  • Nov 10, 06:32 PM (IST)

    Rs 60,000 crore revenue loss for the Centre and Rs 30,000 crore for states due to GST, reports CNBC TV-18

  • Nov 10, 06:25 PM (IST)
  • Nov 10, 06:15 PM (IST)

    JUST IN: All restaurants may move to 5% tax bracket, without input tax credit. The bracket may exclude 5-star ones,sources told Moneycontrol.

  • Nov 10, 06:04 PM (IST)

    No interstate and input tax credit composition dealers, reports CNBC TV-18 

  • Nov 10, 06:03 PM (IST)

    GST Council decides rate for traders and manufacturing under composition at 1% , reports CNBC TV-18 

  • Nov 10, 05:55 PM (IST)

    CNBC TV-18 | The 50 items under the 28% list are likely to be demerit, sin and construction goods

  • Nov 10, 05:43 PM (IST)

    PTI | PTI reported yesterday that the GST Council is in favour of expanding the composition scheme. Composition scheme is a scheme which is open manufacturers, restaurants and traders businesses whose turnover does not exceed Rs 1 crore, which was raised at the October 1 meeting. The initial threshold was Rs 75 lakh. Now, the threshold has jumped to Rs 2 crore.

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