Earlier, 18 per cent GST was applicable for eating out at all air-conditioned restaurants, including those with liquor licences, while customers paid 12 per cent GST at non air-conditioned outlets. The drop in GST rates, however, may not exactly benefit consumers everywhere immediately. This is because the government has chosen to withdraw the input tax credit benefits that it was extending to these restaurants. "Since they did not pass on the ITC (input tax credit) benefit to customers, they will not be eligible for the benefit themselves," Jaitley said. ALSO WATCH: 28 per cent GST tax slab revised, now only 50 items under it from 227

Source: India Today November 16, 2017 08:57 UTC