GST council on Friday has decided to fix the GST on Restaurants reducing tax brackets and hence the burden.
Here’s why eating out could become cheaper:
5% GST on…
- All independent restaurant Ac or non-AC.(which previously was 12% and 18% respectively)
- Takeaway food.
- Restaurants in hotels with room charge less than Rs 7500.
[No input tax credit for these Restaurants]
18% GST on…
- Restaurants in hotels with room charge more than Rs 7500.
- Outdoor Catering.
[Input tax credit available for these Restaurants]
Even though the move (reviewed GST on Restaurants) looks like a win-win for Consumers and Restaurants. Some welcomed it, while others were scared about its achievability as given the removal of input tax credit and said rates might go up as a result.
Hear what others have got to say on the Govt’s move:
- “We are extremely thankful to the government for making these much required changes in the GST regime. This will help restaurants across India rationalise tariffs,” said Oberoi, president, FHRAI.
- “Denying the input tax benefit goes against the very grain of GST and will push up prices by around 10% on the menus”, Rahul Singh, Vice-President, National Restaurant Association of India
- “While the move is great for the consumers and will improve spending and increase the propensity of eating out, it remains to be seen if the move will positively impact the bottom line of the business. says Restaurateur Zorawar Kalra, MD of Everstone-backed Massive Restaurants.
So, What is your take on the revised GST on restaurants?? Express your views below.