Summary:
"Prior to GST people used to pay 22% tax on eating out at AC restaurants and post GST it was reduced to 18 %. Centre has slashed 13% GST on eating out from 18% to a uniform 5%, which has been implemented since Wednesday. "Cutting down GST from 18% to uniform 5% is a welcome step and it will benefit both industry and customer in the long run. However, the tax-cut is unlikely to get reflected on their bills as hoteliers are planning to increase prices of the menu. The ITC was like a support mechanism for the restaurant industry," said Debashis Patnaik, founder of a popular chain of hotels..