Jul 18 | 09:37 IST
|Home » BIZ WRAP» Corporate » Story|
|How new tax rates under GST will affect your restaurant, hotel bill|
| BT Online |
Friday, May 19, 2017 | 16:33 IST
After a two-day meeting of the GST Council in Srinagar, on Friday, Finance Minister Arun Jaitley made announcements related to new tax rates on services. The GST council has agreed on different tax slabs for restaurants depending on their turnover and whether they are AC or non-AC.
This means consumers would have to shell out more or less depending on whether they are visiting a restaurant with air conditioner or just a regular non-ac food joint. The service tax rates at restaurants in 5-star, 7-star hotels will be much higher at 28 per cent.
Similarly, the GST Council decided on different tax rates depending on the type of hotels. The GST on hotels and lodges which charge between Rs 1,000 and Rs 2,500 will be 12 per cent. While, the GST on hotel rooms in the price range of Rs 2,500-Rs 5,000 will be 18 %. For lodges and hotels cheaper than Rs 1,000, the GST is set at 5 %.
Here is a lowdown on the new rates:
More from BIZ WRAP