New Delhi, October 08, 2017: Eating out is set to become cheaper with the GST council in-principle agreeing to reduce the GST rate from the current 18 percent to 12 percent. Finance Minister Arun Jaitley announces that a group of ministers will relook tax on AC restaurants. He also said on-composition scheme taxpayers with turnover up to Rs 1.5 crore can now file quarterly returns according to news18.com.Amid tepid GDP growth numbers and criticism from small businesses and export houses, Finance Minister Arun Jaitley-led Goods and Services Tax Council met on Friday to review the implementation of tax regime and announced a slew of measures to boost economic activity.Jaitley said small businesses would be allowed to file tax returns once a quarter instead of monthly returns. The compliance burden of SMEs in GST has been cut while eligibility of composition scheme has raised to Rs 1 crore.
news18.com further added that GST rate on some stationery items, diesel engine parts has been reduced to 18% from 28%.GST rates of 27 items reviewed by the GST Council, including sliced dry mangoes, khakhra, unbranded namkeen, chapati have also been cut.A group of ministers will study taxation regime for restaurants, especially on bifurcation on basis of AC & non-AC restaurants. If this gets through, air-conditioned restaurants will charge 12% GST, lower than 18% at present.
