Eating out to be cheaper, GST for all restaurants cut to 5 per cent, says Arun Jaitley
New Delhi: A good news that came across the way of all food lovers that eating out at restaurants will now become cheaper as the Goods and Services Tax (GST) council decided to reduce the tax to 5 per cent from the previous 12 to 18 per cent.
Union Finance Minister Arun Jaitley at the 23rd meeting of the GST in Guwahati briefed the media addressing that all restaurants - including both AC and non AC restaurants - across the nation will be levied GST of 5 per cent. No restaurant will have Input Tax Credit (ITC) benefit.
The minister further announced that the hotels of five-star restaurants will attract a tax of 18 per cent with ITC benefit. The outdoor catering service will also come under the 18 per cent tax bracket including ITC benefits.
The new tax rate will come into effect from November 15, 2017.