New Delhi, Nov 16 (KNN) In the 23 Goods and Services Tax (GST) Council meeting on 10 November tax rate for all AC and non-AC restaurants has been slashed from 18 percent to 5 percent and the restaurants will not be provided the benefit of ITC (Input Tax Credit).The rate for restaurants in starred hotel will remain 18 per cent along with the benefit of input tax credit.

Finance Minister Arun Jaitley had said that the all members of the GST Council felt that input tax credit (ITC) to restaurants has not been passed on customers. Goods and Service Tax (GST) was being charged on existing rates which put additional tax burden on restaurant goers. Thus, a universal composition scheme would be applied on the restaurants without the benefit of ITC.

Welcoming the revision of rates by the GST council, The Federation of Hotel & Restaurant Associations of India (FHRAI) President Garish Oberoi in a press interview commended the revisions. The move us likely to fill the gaps that exist in the new taxation, he added. (KNN/AG)