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Rejoice All You Foodies; GST On Eateries Could Soon Be Reduced To 12%


If you've been avoiding eating out because of the mammoth tax on your bill, thanks to GST, there's a ray of hope for you. The GST levied on eateries could be soon reduced to 18 to 12%. The GST Council might also pass a withdrawal of the input tax credit facility given to restaurants. This would mean your restaurant bill would be a lot less than what it is now and life would be sunny again. 

GST On Eateries Could Soon Be Reduced To 12%

This welcome move is a result of complaints that eateries were not actually passing on the tax we paid to the government, and our hard-earned money was going in their pockets. The proposal is being considered by the government and if it is passed, there would be two tax slabs – a 5% slab for eateries whose turnover is up to Rs 1 crore and a 12% slab for the rest. 

"It is one segment that was not passing on the benefits to consumers," a senior officer told TOI. 

GST On Eateries Could Soon Be Reduced To 12%© Thinkstock Photos/Getty Images

Eating out has become a lot expensive ever since the tax was introduced in July this year. It was a whopping 18% for air-conditioned eateries and 12% for the rest. Twitterati has been ranting ever since too: 

AC restaurant - 18%
Non AC restaurant - 12%

Be prepared to wipe your sweat with your tandoori naan.

— Gabbbar (@GabbbarSingh) June 30, 2017

Me: GST aa gya

Friends: pic.twitter.com/uiv1Wuuhcg

— Mojo (@Singhlicious) June 30, 2017

Funny but true #GST #MEMES
Wife: How much do you love me?
Husband: 72%
Wife : Why not 100%?
Husband: 28% GST on luxurious items.ðð

— Kollywood Market (@KollywoodMarket) July 1, 2017

We will, however, have to wait a little as the proposed change will be discussed by a group of ministers at the GST Council meeting next month in Guwahati. 

GST On Eateries Could Soon Be Reduced To 12%

 

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