The changes made to the GST rate from GST Council have come into effect on Wednesday. At the hotel, you will be charged just 5 percent GST. Withdrawing the GST rate, food should be cheaper, but due to one reason, it may be difficult to do this.

In the hotel and restaurant, you will have to give GST only 5 percent, but your bills rarely show the benefits. Further, we are telling you why after gifting the GST rate you are still finding it hard to get the benefit.

In fact, the GST rate has been reduced to 5% on AC and non-AC hotels, but the benefit of input tax credit from hotel owners has been snatched. Because of this, the hotel businessmen are angry.

At the same time, restaurant owners say that even after making GST 5 percent, they will not get much benefit from it. They say that due to the convenience of input tax credit they will be burdened with their pockets. In such a way, the restaurant owner can solve this by extending prices.

Menu prices may increase by 10%: Many restaurant owners, angry with the new changes, are preparing to increase menu prices by 10 percent. If this happens then the customers will not get the benefit of the reduced slab of GST.

However, until the restaurants do not make such a decision, the common people will get the benefit of a reduced rate. This means that you only have to fill the 5 percent GST rate on your bill.

gst in hotels

So far, 12% on eating non-AC restaurants and 18% GST for eating at the AC restaurant. With this, restaurant owners also got input tax credit, but now they will not get the credit.

Although there are some hotels, where you still have to pay 18 per cent GST. If you go to a hotel to eat food, where one room rent is more than Rs 7500 for one night, then you have to pay 18 percent GST rate here. Most of it comes to five-star hotels.

Apart from Five Star Hotel, you also have to give 18 percent GST on outdoor catering. In this case, no relief is given in the tax slab. However, these people can take advantage of the input tax credit.

hotels gst rate

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