Restaurants across the country on Wednesday complied with the lower goods and services tax (GST) rate of 5 per cent after initial reluctance to do so, at least from some quarters. The new GST rates for a host of items — from washing powders and razors to shampoo and watches — kicked in from Wednesday, days after the GST Council pared rates on over 200 items, including 178 in the top bracket of 28 per cent.
Some members of the National Restaurants Association of India (NRAI), which largely represents upmarket chains, have been complaining about the government’s decision to withdraw input tax credit (ITC) and have argued that menu prices may rise by around 6 per cent due to withdrawal of the benefit, which the trade body has said is a key characteristic of GST. Click to read more
In a move set to make eating out lighter on customers’ pockets, the GST (Goods and Services Tax) council slashed the tax rate for restaurants last week. The tax rate for restaurants was revised downwards to a uniform 5% from the earlier 12% for non-air conditioned restaurants and 18% for air-conditioned restaurants. But restaurants won’t get the benefit of input tax credit, a facility to set off tax paid on inputs with final tax. The tax cut was part of the biggest change to GST rates since July 1. Apart from restaurants, tax rates for 200 items were also slashed. Click to read more
Eating out in India has become cheaper now after the GST Council announced last week that it will slash Goods and Services Tax (GST) rates from 18 per cent to 5 per cent for restaurants and eating joints.
The GST rate stays at 18 per cent for only those restaurants that are located inside hotels where room tariff is more than Rs 7,500 per night and for outdoor catering. Click to read more
The government has exempted businesses from deducting GST on advances received for supplying goods in future, a move which will help unblock working capital of firms.
The Central Board of Excise and Customs (CBEC) last month said that businesses with turnover up to Rs 1.5 crore are exempt from deducting Goods and Services Tax (GST) on advance payment for supply of goods.
The CBEC, through a notification, has now extended this exemption to all businesses, except for those who have opted for composition scheme under the new indirect tax regime. Click to read more
India’s ambitious new goods and services tax (GST) was rolled out in July by Prime Minister Narendra Modi, who compared the moment to India gaining freedom at midnight in 1947. But since then, substantial changes have been made to the tax, indicating that it was not thought through. Worryingly, given an extremely complex system and negative feedback from many quarters, more changes may be necessary.
There were enormous political hurdles to creating a unified indirect tax structure. India’s states have the right to impose taxes according to the constitution. This has led to a very complex, unwieldy structure where multiple taxes are imposed on the same items. Click to read more
The Union cabinet on Thursday approved setting up of a National Anti-profiteering Authority under the GST, as it seeks to ensure that consumers get the benefit of reduced prices under the new indirect tax regime.
Union minister Ravi Shankar Prasad said currently there are only 50 items which attract the highest tax of 28% under the goods and services tax (GST) regime and rates on many items have been cut to 5% as well. Click to read more
Eating out has become marginally cheaper from Wednesday as consumers will now have to pay less tax on food served in restaurants.
Last week, the GST Council cut GST rates for all restaurants, except the ones located within hotels with room tariffs of Rs7,500 and above and outdoor catering, to 5%. Earlier, the levy was 18% for air-conditioned eateries and those with liquor licences and 12% for non-air-conditioned restaurants. Click to read more