Indore: There is a reason to rejoice for foodies. Eating out at food joints and small restaurants will become economic with the implementation of Goods and Services Tax (GST).
Small restaurants will have to pay less tax since July which means that the burden on customers will reduce. Restaurants with an annual turnover of less than Rs 50 lakh has been put in a tax slab of 5 per cent in the GST council meet.
Chartered accountant Abhay Sharma said, "The GST council has recommended placing small restaurant in the tax slab of 5 per cent. If the recommendation is approved then eating out will become economical."
Experts said that customers will have to pay just 5 per cent tax on the food bill as against 15 per cent service tax and other miscellaneous charges.
Tax consultants said that in the GST council meeting, the council has decided that restaurants with an annual turnover of less than Rs50 lakh can pay a tax at the rate of 5 per cent of which 2.5 per cent will be central GST and another 2.5 per cent will be state GST.
Rahul Gupta, an owner of a food joint at Palasia said, "If the proposed recommendation is approved then it will help in increasing the footfall at smaller joints. It's a good move. The burden of taxes are finally borne by the customers so if hotels will have to pay less, they will also charge less."
The GST is expected to be implemented in the country in July 2017. GST aims at providing a single window tax structure across the country, simplifying tax refund and inter-state transfer of goods and ensures merchant compliance.
Anuradha Shrivastav, a house wife said, "It's a good decision and help in saving money on outings. We go on outing every weekend to some or other places. Additional charges on bill amount constitute a major chunk of the food bill."
Source: timesofindia.indiatimes.com