New Delhi: The GST Council today has decided to slash it to 50 items under the 28 percent GST slab which earlier had more than 200 items in the category.
Now according to the revised GST, dining out will be cheaper since GST on restaurants has been slashed to 5 percent compared to the old GST of 18 percent on AC Restaurants and 12 percent on non-AC restaurants.
The Finance Minister has confirmed that except the five-star hotels, GST on restaurants irrespective of AC or non- AC will be 5 percent.
The restaurant industry will not get input tax credit, Mr. Jaitley said.”Tax rate will be 5% uniform for all AC or non-AC restaurants, Restaurants in starred-hotels will charge 18% tax with input tax credit, those in lower category hotels to charge 5% GST without ITC.”
However, Hotels with tariffs over Rs 7,500 per night will not be counted under 5 percent bracket and they will be taxed at the current norm of 18 percent.
The Finance Minister has added that 178 items have been moved to 18 percent bracket from the 28 percent slab that will be applicable from 15 November.
Whereas thirteen items were moved to 12 percent bracket from the current 18 percent, 6 items were moved to 5 percent bracket from 18 percent while 8 items from 12 percent have been moved to 5 percent with 6 items moved to nil from the current 5 percent bracket.
Construction-related items like marble, flooring, etc. have also been put in the 185 tax slab.