Latest Update on GST Slab Changes for Restaurants

Narendra Modi government introduced GST (Goods and Service Tax) in Indian’s economy with the slogan ‘one country – one tax’ on July 1, 2017, to replace multiple taxes of central and state governments with a single tax regime. 

Though GST is beneficial to the poor people with zero and minimum slab rates on basic goods and services, it resulted in the reduction of luxury customers with highest GST slab rates of 18% on Luxury 5 star hotel and other luxury goods and services. After witnessed the decreased luxurious customers for around 3 months, government is now planning to reduce the 18% GST slab on AC Restaurant to 12%, i.e., equal to the tax slab of Non-AC restaurants. 

According to Ellaa Hotel’s media reports, a five member ministerial panel is set up to examine the proposal of reducing the tax slab of 5 star hotels. If the panel finalized the tax slab reduction, then people can reside and eat at AC Restaurants at cheaper costs equal to the Non-AC restaurants.