Dining likely to get economical – GST Rates on Restaurants expected to be slashed by November, 2017
Amidst the wavering dust storm around GST implementation, its online intricacies, the ignorantly attracted penalties and late fees and the amplified GST rates, the government has its agenda ready and is all set to re-discuss many burning issues, in its next GST Council meeting in Guwahati on 9th November 2017.
GST rates on restaurants [both AC and non AC ones] would be among the key considerations and will be addressed in full swing. The GST Council seems to feel the genuine discomfort of the masses and looks pretty sold by the fact, to lower the taxation percentage for this massive segment, profoundly connected to the society at large, on a day to basis.
A high level member committee of 5 state finance ministers will dig deep into this and present its recommendations in the next GST council’s meeting.
Internal sources on the condition of anonymity revealed that both this 5 member panel and the GST Council is open to reduce the slabs. It is imperative to note, that the rates on the AC restaurants in luxury hotels have once been squeezed in June’17 to 18% from 28% [when GST was launched].
Following the steeply reducing economic growth at 5.7% [lowest in the last 3 years] in the quarter ending in June’17 from 6.1% in the former quarter, the GST Council reduced the taxation slabs of 27 products along with tweaking and relaxing some compliance norms for SMB and exporters. The next Council meeting is also expected to follow the same route and some more supplies and provisions would be made lighter.
As reported in Live Mint.