Eating out to become cheaper from Wednesday after the GST Council Meeting led by Finance Minister Arun Jaitley revised the rates of the new national tax on November 10. The GST rate charged by restaurants has been cut to a uniform 5 per cent now.
Earlier, 12 per cent GST on food bill was levied in non-AC restaurants and 18 per cent in the air-conditioned ones. All these got input tax credit, a facility to set off tax paid on inputs with final tax.
The GST, implemented from July 1, had five tax slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.
In the biggest GST rejig yet, tax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products, wigs and wrist watches, were cut to provide relief to consumers and businesses amid the economic slowdown.
As many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent, while a uniform 5 per cent tax was prescribed for all restaurants, both air-conditioned and non-AC, Finance Minister Arun Jaitley said after the GST Council meeting.
In effect, the council, in its 23rd meet, cut rates on 177 goods.