Eating out may get cheaper as GST is likely to be cut to 12%
19/10/2017
new delhi: A GST panel which been tasked to revisit Goods and Services Tax (GST) rates for restaurants, has considered the case for scrapping the distinction between air-conditioned (AC) and non-air-conditioned restaurants, media reports said.
The 5-member the group of ministers (GoM), under Assam Finance Minister Himanta Biswa Sarma has reportedly consented to back reduction in the levy on restaurants from 18 percent to 12 percent and withdrawal of the input tax credit facility available to eateries.
Currently, GST is levied at 12 percent on non-AC restaurants while it is 18 percent for air-conditioned ones.
With only over 15.50 lakh businesses out of 98 lakh registered under the GST regime opting for the composition scheme, the GST Council decided to set up the GoM to examine ways of making it more attractive.
Businesses with turnover of up to Rs 1 crore can opt for the composition scheme and they can pay taxes in the range of 1-5 percent and file returns quarterly.
Reports further said that there could be two tax slabs for restaurants. Eateries with a turnover of up to 1 crore that opt for the composition scheme will be put under 5 percent tax slab while others will be placed under 12 percent bracket.
The GST Council, chaired by Finance Minister Arun Jaitley and consisting of his state counterparts, had on October 7 constituted the GoM, which will submit its report by the end of November.
The other members of the GoM are Bihar Deputy Chief Minister Sushil Modi, Jammu and Kashmir Finance Minister Haseeb Drabu, Punjab Finance Minister Manpreet Singh Badal and Chhattisgarh Minister of Commercial Taxes Amar Agrawal.
Share This Story |
|
Comment On This Story |
|
|
|
|