12 percent GST to make eating cheaper

Last Updated: Wed, Oct 18, 2017 15:06 hrs
Star Hotel (Reuters image)

If the Finance ministry paves way for a small tweak, your eating bills could certainly become cheaper. According to several media reports, the ministry is mooting for a decline in GST charges on restaurants.

Currently, customers pay nearly 18% GST for AC restaurants, and 12% for non-AC ones.

The GST council had formed a GoM (Group of Ministers) with an idea of making the composition scheme attractive. The composition scheme could attract only 15.50 lakh businesses of the 98 lakh registered establishments.

The GoM in a meeting proposed to tweak the GST rate to 12%. The Economic Times carried a story of the report. 

The story further states that the committee led by Assam Finance Minister Himanata Biswas, took the isse of 18% GST on eating out during a meeting. The meeting was also attending by Sushil Modi, Bihar' Deputy Chief Minister, as well as state ministers from Jammu & Kashmir and Chattisgarh.

In a meeting convened on October 6, a mandate to revisit the tax rates was put forth. Although the GSTN as well as tax officials are yet to officially communicate developments, an official announcement should be expected around November 9.



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