GST price dropped | Enjoy your food with just 5% GST
Without entry tax credits, experts have warned that the restaurant should be 10%
With goods and service tax (GST) cut for more than 200 items, due to this decision, the restaurant prices of alternating current eated in Delhi have declined, which can afford the cheapest food. But without entry tax credits, many experts say that the restaurant may end up rising menu prices.
Tax rates of 18% for air-conditioned restaurants and 12% for non-air-conditioned restaurants have been reduced to 5% GST on all food items as of November 15. For VAT, Value Added Tax (VAT) expenses will continue, which are not covered under GST.
The Tanushree Sarkar, an advisor from Delhi, said, when she used to eat almost four times a week before the new tax regime.
‘It was too expensive only up to those places you think it will be cheaper to be expensive and not have global tax prices printed on the menu so if you expect to go to a restaurant, at Rs 500 per person, with service tax and taxes, at final this will be 700 rupees per person. ‘
Sandeep Khandelwal, the president of the Restaurant and Hotel Owners Association of Delhi welcomed the tax prices and said that this would motivate people to pay taxes. ‘People will not try to cheat taxes now, they said, it’s so low, it can be cheap to pay, it can get you out of your way.’
However, the restaurant will not be able to return the tax credit (ITC), which has already cut the raw material before the final fiscal amount, some experts say that menu prices can increase by at least 10%. ‘The benefits of ITC have been rejected against GST’s very grain, this will increase the cost of up to 10%, which will be mentioned on the menu price,’ said Rahul Singh, founder and president of the Beer Café. Marginal benefits will be available.