One hundred and seventy-seven items have been lucky enough to now be taxed at 18 percent from the earlier level of 28 percent, food in hotels in now going to get cheaper.
Frank Zappa wrote in his famous song “Montana” that he would grow some “crop of dental floss in Montana and sell uptown”. Although Zappa was making a pun on humanity and youth, the Modi government has made your dental floss cheaper just so that you may go to work prim and proper. So, for all of you oral hygienists and chocolate lovers, GST rate has dropped from 28 percent to 18 percent. Jokes apart, a diverse bunch of SMBs in construction and manufacturing can benefit from this move.
So, just as people thought that the Modi government was making things unbearable with GST’s implementation, the government seems to have reacted fast in understanding their woes. 177 items have been lucky enough to now be taxed at 18 percent from the earlier level of 28 percent.
It also seems that the hotel industry has lobbied for that change because their clientele has, over the last four months, not been spending more and have lowered the ticket sizes of orders. So, the Finance Minister Arun Jaitley made sure that a uniform five percent GST would be charged on food bill in both AC and non-AC restaurant.
As of today, 12 percent GST on the food bill is charged in non-AC restaurants and 18 percent in AC restaurants. Restaurants in star hotels that charge Rs 7,500 and above for a room will be levied 18 percent GST and input tax credit will be allowed for them.
Here are a few products that will become cheaper after GST being dropped from 28 percent to 18 percent:
Here is the complete list:
or other organic binding substances, other than specified boards
of Granite, of other calcareous stone.