GST rollout: Be ready to pay 18% service tax even at non-AC restaurants

On Sunday, Finance Minister Arun Jaitley in 17th meeting said that GST on restaurants in five-star hotels was reduced to 18% from 28%, bringing it at par with standalone air-conditioned restaurants.

GST rollout: Be ready to pay 18% service tax even at non-AC restaurants
Representational Image: Photo: Pixabay
Written By: ZeeBiz WebTeam
Updated: Wed, Jun 21, 2017
08:09 pm
Mumbai, ZeeBiz WebDesk
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The new tax regime, Goods and Service Tax (GST) will be a reality in less than two weeks and the whole country is gearing up for the change in tax structure. 

On Sunday, Finance Minister Arun Jaitley in 17th meeting said that GST on restaurants in five-star hotels was reduced to 18% from 28%, bringing it at par with standalone air-conditioned restaurants.

But, if you look into the announcement closely, there is one more thing which will make eating food in restaurants costly. 

ALSO READ: FMCG products to see decline in volume post GST: Britannia

For instance, if you intend to save money and opt for sitting in non-AC restaurant, then the GST service charge will be same as AC restaurants. 

According to GST law, non-AC restaurants will charge 12% tax and AC restaurants will levy 18% tax. But, those restaurants which have both AC and non-AC sitting option, will be charging service tax as per AC restaurants or 18%.

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