GST tax rates to be slashed to 1 percent for manufacturers, restaurants

New Delhi, October 30: To make the GST composition scheme more attractive, the ministerial panel has suggested reducing the tax rate to 1 percent for manufacturers and restaurants. The manufacturers and restaurants pay GST under composition scheme at 2 percent and 5 percent respectively whose turnover is up to one crore rupees.

 

The Group of Ministers, headed by Assam Finance Minister Himanta Biswa Sarma on Sunday in its second meeting suggested that the tax rate difference between AC and non-AC restaurants should be written off and they should be taxed under composition scheme and taxed at12 percent with input credit.

Instead of any separate category for 5- star hotel, the hotels with the room tariff of more than 7,500 rupees should attract a uniform 18 percent tax rate the Group of Ministers (GoM) suggested. The GST Council headed by the Finance Minister Arun Jaitley is probably take up the recommendations of the GoM, which was set up earlier this month.