GET Stock QuotesNews18 APP
News18 English
LIVE NOW
auto-refresh

GST Council Meet LIVE: Eating Out to be Cheaper After Rate on Restaurants Slashed to 5%

News18.com | November 10, 2017, 7:59 PM IST
facebook Twitter google skype
The GST Council on Friday decided to reduce tax rate on a wide range of daily use items to 18 per cent from current 28 per cent. Finance Minister Arun Jaitley said the Council has decided to cut tax rate for restaurants to 5 percent. The new tax rate would be applicable to both AC and non-AC restaurants, except those in five-star hotels.

Stay tuned for LIVE updates:
Nov 10, 2017 7:49 pm (IST)
Nov 10, 2017 7:24 pm (IST)

The only exception to the 5% tax rate would be restaurants in starred hotels that have room tariff of over Rs 7,500 per night. They would be taxed at 18%, like earlier. Outdoor catering will also be taxed at the old rate of 18%, says Jaitley.

Nov 10, 2017 7:23 pm (IST)

The finance minister confirms that all restaurants will come under the 5% tax bracket, irrespective of whether they are AC or non-AC. The restaurants, however, will not get benefit of Input Tax Credit. The decision has been taken because it was found that restaurants were not passing on benefits of ITC to customers. They were charging GST on previous rates and the burden was on the customer. 

Nov 10, 2017 7:18 pm (IST)

Jaitley confirms that 178 items have been moved from the 28% slab to the 18% slab. The new rate will be applicable from November 15. Construction related items like marble, flooring, etc. have also been put in the 185 tax slab. Only 50 goods will stay in the highest slab of 25%.  

Nov 10, 2017 7:16 pm (IST)
Nov 10, 2017 7:15 pm (IST)

Finance Minister Arun Jaitley talks about the changes made to the GST structure. He says that when initially, GST rates were fixed keeping in mind previous tax structure that had excise and VAT. He says that the GST council has systematically looked at the 28% tax bracket in the last three monthly meeting for rationalization and rates have been cut as they were of daily use. Only demerit goods will stay in the 28% slab, he says.

Nov 10, 2017 7:06 pm (IST)

Finance Minister Arun Jaitley will address a press conference in Guwahati shortly to talk about the various changes to GST. Sweeping changes, including simpler procedures, a single return filing form for small firms, are also likely to have been approved.

Nov 10, 2017 7:01 pm (IST)

GST Network today said businesses can now make changes to the forms uploaded on the portal to claim transition credit, reports Moneycontrol. "The facility to revise Form GST TRAN-1 declaration has been introduced on the GST Portal for taxpayers who had already filed it prior to November 9, 2017," GSTN said in a statement.

Nov 10, 2017 6:46 pm (IST)

GST Council decides to raise composition scheme threshold to Rs 2 crore, reports CNBC TV-18. PTI reported Thursday that the GST Council is in favour of expanding the composition scheme. Composition scheme is a scheme which is open manufacturers, restaurants and traders businesses whose turnover does not exceed Rs 1 crore, which was raised at the October 1 meeting. The initial threshold was Rs 75 lakh. Now, the threshold has jumped to Rs 2 crore.

Nov 10, 2017 6:41 pm (IST)

The GST council has also decided the tax rate for traders & manufacturing under composition will be 1%. No inter-state taxes & input tax credit for composition dealers will be levied.

Nov 10, 2017 6:37 pm (IST)

Sources tell CNBCTV18 that the GST Council will cut tax rate for restaurants to 5 percent without Input Tax Credit. The new tax rate would be applicable to both AC and non-AC restaurants, except those in five-star hotels.  

Nov 10, 2017 4:41 pm (IST)
Nov 10, 2017 4:41 pm (IST)

In effect, the GST, in its 23rd meet on Friday, cut rates on 177 goods. Facing intense heat from opposition-ruled states over keeping mass used goods in the 28 per cent bracket which was meant for luxury and de-merit goods, the Council pruned the list to 50 as against 62 that was recommended by its fitment committee.

Nov 10, 2017 4:03 pm (IST)
Nov 10, 2017 3:01 pm (IST)
Nov 10, 2017 3:01 pm (IST)

RECAP | The Group of Ministers (GoM) had also suggested that eating out at hotels that have room tariff of more than Rs 7,500 should attract a uniform 18 per cent rate instead of any separate category for a 5-star hotel, which currently falls under the 28% bracket. With regard to traders, the GoM came up with a two-pronged approach for taxation under the composition scheme. It suggested that traders who want to exclude sale proceeds of tax-free items from turnover can pay 1% GST. However, for those who pay tax on total turnover, the tax rate has been proposed at 0.5%.

Nov 10, 2017 2:57 pm (IST)

RECAP | Bihar Deputy Chief Minister Sushil Kumar Modi, who is also a member of the GST Council, said goods used by common man have been removed from the 28% slab. “Only luxury goods and items such as tobacco and cigarettes have been kept in the 28% slab." The Rate Fitment committee had proposed keeping 68 items in the bracket. Pruning this tax bracket may result in revenue loss of Rs 20,000 crore. The government seems to have gone a step further.

Nov 10, 2017 2:55 pm (IST)

RECAP | In what can be deduced as the biggest re-jig in GST rates, only 50 out of more than 200 items have been retained in the 28% rate slab. Luxury items and goods such as tobacco are the ones that will attract 28% tax from now on. In a meeting held on Friday in Guwahati, GST council decided to drop items used by common man from the highest tax slab and lower their taxes to 18%. GST council largely consists of state finance ministers headed by central finance minister Arun Jaitley.

Nov 10, 2017 2:20 pm (IST)

Bihar Deputy Chief Minister Sushil Kumar Modi, who is also a member of the GST Council, says goods used by common man have been removed from the 28% slab. “Only luxury goods and items such as tobacco and cigarettes have been kept in the 28% slab."

Nov 10, 2017 1:19 pm (IST)

JUST IN | GST Council is mulling keeping only 50 items in the 28% tax slab, reports CNBC TV-18. At present, the bracket includes more than 200 items. The Rate Fitment committee had proposed keeping 68 items in the bracket. Pruning this tax bracket may result in revenue loss of Rs 20,000 crore.

Nov 10, 2017 12:44 pm (IST)

The Group of Ministers (GoM) has also suggested that eating out at hotels that have room tariff of more than Rs 7,500 should attract a uniform 18 per cent rate instead of any separate category for a 5-star hotel, which currently falls under the 28 per cent bracket. With regard to traders, the GoM came up with a two-pronged approach for taxation under the composition scheme. It suggested that traders who want to exclude sale proceeds of tax-free items from turnover can pay 1 percent GST. However, for those who pay tax on total turnover, the tax rate has been proposed at 0.5 per cent. 

Nov 10, 2017 12:41 pm (IST)

JUST IN | GST Council begins deliberations on likely tax cuts

Nov 10, 2017 10:55 am (IST)

Besides, making the composition scheme more attractive is on the agenda and as per the Group of Ministers (GoM) recommendations, the GST Council may decide to allow businesses in the inter-state trade to opt for the arrangement. The GoM had also suggested slashing tax rate to 1 per cent for manufacturers and restaurants opting for the scheme from 2 per cent and 5 per cent, respectively. It was in favour of doing away with the tax rate distinction between AC and non-AC restaurants, those which are not covered under the composition scheme and tax them at a flat 12 percent. Currently, non-AC restaurants are taxed at 18 per cent.  

Nov 10, 2017 10:45 am (IST)

The GST Council, comprising state finance ministers, is also set to review the GST returns filing cycle and make it taxpayer-friendly. The Council may rationalise rates in sectors where the total incidence of taxation has gone up because the goods were either exempt from excise or attracted lower VAT rates under the previous indirect tax regime, PTI reported. As the Council tries to accommodate industry concerns on tax rates, after estimating the impact on revenue, a rationalisation of items in the 28 per cent tax bracket is expected. 

Nov 10, 2017 10:30 am (IST)

The GST Council will also deliberate on the suggestions made by Assam Finance Minister Himanta Biswa Sarma-headed GoM to cut tax rates for the composition scheme businesses to 1% and lower rates for non-AC restaurants. The Council, comprising state finance ministers, is also set to review the GST returns filing cycle and make it taxpayer-friendly.

Nov 10, 2017 10:29 am (IST)

The GST Council is holding its 23rd meeting in Guwahati today and may approve tax cuts on items that fall within the 28% slab and slash rates for daily use items, plastic products and hand-made furniture as it looks to provide relief to consumers. Four months after the Goods and Services Tax (GST) was rolled out, the panel headed by Union Finance Minister Arun Jaitley will look at the most comprehensive overhaul of rates, easing returns filing and providing more relief to small and medium enterprises. 

  • 13 Oct, 2018 | England in Sri Lanka
    ENG vs SL
    278/9
    50.0 overs
    140/5
    29.0 overs
    England beat Sri Lanka by 31 runs (D/L method)
  • 12 Oct, 2018 | Zimbabwe in South Africa
    ZIM vs SA
    132/7
    20.0 overs
    135/4
    15.4 overs
    South Africa beat Zimbabwe by 6 wickets
  • 12 - 14 Oct, 2018 | West Indies in India
    WI vs IND
    311/10
    101.4 overs
    367/10
    106.4 overs
    India beat West Indies by 10 wickets
  • 10 Oct, 2018 | England in Sri Lanka
    ENG vs SL
    92/2
    15.0 overs
    /
    overs
    Match Abandoned
  • 09 Oct, 2018 | Zimbabwe in South Africa
    SA vs ZIM
    160/6
    20.0 overs
    126/10
    17.2 overs
    South Africa beat Zimbabwe by 34 runs
Loading...
Loading...