With the latest GST reform, bills at restaurants in Chandigarh are expected to come down. As per the report, eating out would become cheaper after the latest GST reform. The GST Council has slashed the rates for both air conditioned as well as non-air-conditioned restaurants. From the existing 18 per cent, the rates have been reduced to 5 per cent without input tax credit. As per the current GST slab, a 12 per cent GST is levied on the food bill in non-AC restaurants and whereas the air-conditioned restaurants are attracting 18 per cent GST.
GST on restaurant bills slashed, food bills to come down
Dining out with your family and friends will turn cheaper. Under the latest GST reform, the GST Council has slashed the tax on restaurant bills. According to the report, a uniform 5 per cent tax in place of 18 and 12 per cent tax will be levied for all restaurants. There will be no differentiation between the air-conditioned and non-air-conditioned restaurants as both will now attract a uniform tax of 5 per cent. Since GST roll out on July 1 this year, a 12 per cent GST was being charged on the food bill in non-AC restaurants and 18 per cent was levied in air-conditioned ones.
These hotels will still charge 18 per cent GST
As per NDTV, a uniform 5 per cent GST will be levied from standalone restaurants following the latest GST reform. The report also mentions that the restaurants which are combined with a hotel will attract the same tax slab. The restaurants that are housed in starred hotels, will attract GST at 18 per cent.
According to the report, starred hotels are the ones that charge a tariff of Rs 7,500 or above for their rooms. In addition to the starred hotels, outdoor catering will also continue to attract 18 per cent GST. These starred hotels, as well as the outdoor catering, will be eligible for input tax credit.
It is being speculated that since restaurants will not get the benefit of input tax credit, there are chances that they may hike the menu prices to bear the expenses and keep costs under control.