Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: No rating
Article rating: 4.0
Article rating: 3.8
Article rating: 2.9
Article rating: 2.3
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating


Lower GST rates on restaurants, 178 goods become effective

Author: IANS/Thursday, November 16, 2017/Categories: TRACKING THE GST

Lower GST rates on restaurants, 178 goods become effective

New Delhi - The most comprehensive overhaul of GST rates decided at a GST Council meeting, wherein tax on all restaurants was reducted to 5% and tax on 178 items slashed, became effective from November 15 as the government issued notifications to this effect.

Eating out is expected to become cheaper as all restaurants outside high-end hotels charging up to Rs 7,500 per room have uniformly come under the 5% GST bracket from November 15, according to the gazette notification.

The facility of input tax credit for restaurants has, however, been withdrawn as they had not passed on this benefit to consumers.

Restaurants in hotels with rooms above Rs 7,500 per day would continue to pay 18% GST with the benefit of input credit.

According to the notifications, the GST has been cut on a host of consumer items such as chocolates, chewing gums, shampoos, deodorants, shoepolish, detergents, nutritional drinks, marble, and cosmetics.

Only 50 products, including luxury and sin items, white goods, cement and paints, automobiles, washing machines, air conditioners, aeroplane and yacht parts have been retained in the top 28% slab.

Scientific and technical equipment supplied to public-funded research institutions will now attract a concessional GST rate of 5%.

"This major revamp will benefit the consumers, provided the FMCG players reduce the prices of the products speedily," GST expert Pritam Mahure said.

The Goods and Services Tax (GST) Council on November 10 removed 178 items from the highest 28% category while cutting the tax on all restaurants outside starred-hotels to 5%, but withdrew input credit facility for them. 

The Finance Ministry later issued a statement listing the items, broadly grouped, on which the GST stands reduced to 18%. 

These include wires, cables, electrical plugs, switches, sockets and fuses, furniture, mattress, bedding "and similar furnishing", apart from Trunks, suitcases, vanity cases and briefcases, travelling bags and other handbags; detergents, washing and cleaning preparation, shampoos, hair cream and all types of hair dyes and similar other goods.

Other items lowered from the highest bracket include perfumes, beauty or makeup preparations, fans, pumps, compressors, lamp and light fittings, and all kinds of sanitaryware.

Print Rate this article:
No rating

Number of views (240)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free