GST- A Big rejoice for restaurants

There is a reason to rejoice for foodies. Eating out at food joints and small restaurants will become economic with the implementation of Goods and Services Tax (GST).

Small restaurants will have to pay less tax since July which means that the burden on customers will reduce. Restaurants with an annual turnover of less than Rs 50 lakh has been put in a tax slab of 5 per cent in the GST council meet.

The GST council has recommended placing small restaurant in the tax slab of 5 per cent. If the recommendation is approved then eating out will become economical.”

Customers will have to pay just 5 per cent tax on the food bill as against 15 per cent service tax and other miscellaneous charges.

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