The reduced GST rates come into effect today. GST on 178 items had reduced to 18 percent from 28 percent. These include a wide range of common use items. Eight items have been moved from 12 percent slab category to 5 percent.
Union Finance minister Arun Jaitley had announced major GST relief to promote ease of doing business last Friday. He said all stand-alone restaurants irrespective of air-conditioned or otherwise, would attract 5 percent tax without Input Tax Credit, ITC.
The Federation of Hotel and Restaurant Associations of India has said that GST Council’s decision to cut the tax rate for restaurants to 5 percent without Input Tax Credit (ITC) will help restaurants across India rationalise tariffs.
Welcoming the move, Association President Garish Oberoi said they were demanding to bring down GST rate on restaurants to 12 percent with ITC or at 5 percent without ITC.
