New Delhi: A proposal to slash the GST on an air-conditioned (AC) restaurant to 12 per cent from 18 per cent may be approved at the ongoing apex GST Council meeting in Guwahati on Thursday and Friday. A cut in the tax, favoured by a group of ministers on the GST, will simplify the new indirect tax system. Only restaurants without air conditioning and a bar attract a GST of 12 per cent. Officials feel the facility of input tax credit should be withdrawn if the AC restaurants play a lower tax. The GST Council had earlier decided to bring about a distinction between AC and non-AC restaurants and tax the latter at a lower rate.

Source: The Telegraph November 09, 2017 19:30 UTC