Cabinet committe decided 12% GST for Restaurants
The Cabinet Committee has made several suggestions on amendments to the goods and services tax (GST) policies. It decided to implement 12% tax on all restaurants (non-choosing a Composition Scheme) thought is AC or non-AC restaurants. At present, 5 per cent of restaurants in the Composition Scheme, Up to now 2 per cent tax for manufacturers, but it would be reduced to 1 per cent from now.
Similarly, hotel rentals charges more than $ 7,500 per room would have to pay 18 per cent of GST that will be same to five-star hotels also. The Cabinet advised that a merchant tax payer who chooses the Composition Scheme has to pay tax of about 0.5% for non-tax applicable products and 1% tax of for tax applicable products when it comes he selling two types of goods.
Up to now over 1 crore merchants registered in GST and over 15 lakh people chooses composition scheme.