Search
Restaurant Rates Hiked Despite Slashing of GST Rates
November 22, 2017
Although the Goods and Service Tax (GST) Council recently lowered the rates of both AC and non-AC restaurants, the eateries have increased their base rates. This is because the benefit of Input Tax Credit (ITC) that was earlier available to them has been revoked. To compensate for the same, they have increased the base prices.
As per the recent move, the tax rates applicable to AC and Non-AC restaurants have been lowered to 5% from 18% and 12% respectively.
ITC is a provision given to the businesses registered under the GST regime as per which they can claim a refund on the tax paid on the input.
