New Delhi, November 11: The decision of the GST council to cut the tax rate for the restaurants to 5% without Input Tax Credit (ITC) will help restaurants across India rationalize tariffs said the Federation of Hotel and Restaurant Associations of India (FHRAI).
The president of the association Garish Oberoi said that to bring down GST rate on restaurants to 12% with ITC or at 5% without ITC, the demand was up. He further added that we are extremely thankful to the government for making these much-required changes in the GST regime. This will help restaurants across India rationalize tariffs.
On November 10, Goods and Services Tax (GST) Council in its 23rd meet slashed the tax rate on 177 goods. As per latest reports, of the 227 items placed in 28% GST slab, the tax rates of 177 items have been slashed to 18%, leaving 50 which are mostly luxury items.
FHRAI is the Hospitality Industry and provides an interface between the Hospitality Industry, Political Leadership, Academics, International Associations and other Stake Holders.