GST Tax Rates Reduced on Restaurants.
The eating is now going to be likely cheaper than before. Goods and Services Tax council has been continuously updating reforms in the establishment Indirect Tax regime. A meeting was held in Guwahati in November and it was decided to reduce Tax Rates on 178 items from 28% to 18%. In the same meeting, all the Air-conditioned and non Air-conditioned Restaurants were kept under the 5 percent Goods and Services Tax bracket without input tax credit. This has become relaxing for most of the people directly or indirectly related to the food business as well.
The council of the GST has made several moves. Let us have a look at all the provisions and after-effects of the same.
- Previously the Tax Rate was kept at 28%. And on all the 178 items and goods, it has been reduced to 18%.
- The Goods and Services Tax council has only spared luxury goods from the recent move and left at the tax rate of 28 percent.
- The Goods and items on which the tax slab is still 28% are deemed as luxurious and are 50 in number.
- The Restaurant industry will not be getting the benefit of input tax credit, commonly abbreviated as ITC.
- The Restaurants that are starred in Hotels will keep under the Tax Rate of 18%. And on the same percentile of 18, outdoor catering shall be taxed.
- Also, the Taxpayers who have a turnover up to the amount of 1 Crore shall have to file invoices every Quarter of the Year. On the other hand, the taxpayers who have a turnover of more than 1 Crore shall be filing invoices every month.
The GST council along with the Union Minister of Finance, Mr. Arun Jaitley have made clear all the moves have taken inside the meeting. The decision is deemed as a relaxing point to most of the public and Restaurant goers. These tax slabs are seemingly perfect for the people in Restaurant business industry and the restaurant goers.
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