Tax on Restaraunts reduced to 5 %

Guwahati Nov 11: The GST council in a move to give relief to common man has taken some crucial decesions.The council has decided to cut the tax rates of restaurants to 5 % . Earlier the Group of Minister's committee has recommended that restaurants must be charged at 12 %.

Speaking to media after Finance Minister Arun Jaitley has said that "We have fixed the tax rates on all restarunts at 5 % , however, the restaurants cannot claim Input tax credit".

He has said that we have taken this decision because the industry didn't pass on the tax credit they have received.

Currently, 18 % Tax rate is applicable to Ac restaurant

12 % tax rate for Non -Ac restaurant

The FM has said that for 5-star hotels above RS 7500 The Tax rate would be 18 % with ITC.

Currently, there would be only 50 items in the 28 % tax rates these include

paints,cement,washing machines,Ac,pan masala,Aeorated drinks,Refrigerators,cigarates,cigars,
vaccum cleaners,cars,Flights,yachts,perfume,dish cleaners.