New Delhi: Restaurants, hotels and eateries should cut rates on food items in their menu to reflect the benefit of being able to set off tax paid on inputs under goods and services tax (GST), revenue secretary Hasmukh Adhia said on Tuesday. Under the GST regime, while non-air-conditioned restaurants attract 12% tax, air-conditioned restaurants and those serving liquor will attract 18%. Adhia further said that anything that is served as part of restaurant bill will be subject to GST, barring alcohol on which VAT will be levied. “On the entire value of food bill, including service charge, on that portion also GST will apply,” he said. As per the GST provisions, ITC will not be available for central excise already paid on cars which are on lease.

Source: Mint July 11, 2017 14:37 UTC