Tax reduced on restaurants ,Releif partial

Bengaluru Nov 21: In a move to grant relief for customers who eat in restaurants the GST council has earlier cut the tax rates to 5 % and has revoked the input tax claim benefit.

Currently under GST input tax can be claimed on the purchase of the goods and the government has also said that retailers must pass the excess input tax claims to the customers in the form of the reduction in prices.

However many of the restaurants have not passed on the benefit to the customers because of following reasons

Menu price increase

Many restaurants have increased the prices of food items served to cover up the losses as input tax credit was not available and they said that inputs have become costly.

Some restaurants pass benefits

some restaurants have passed on the tax benefits and have reduced the prices and customers were happy.

However, the experts said that the customers would be benefitted as the input tax claimed would be restaurants is low.

Anti Profiteering authority established

The government has recently established the anti-profiteering authority and said that customers can complain to the authority if they feel that tax benefits are not passed on to the customers.