Bhopal: Wednesday brought good tidings for food lovers as well as restaurant owners of the city. Eating out will weigh less on the pocket now as the GST on air-conditioned restaurants has been slashed from 18 percent to 5 percent. In case of non-AC restaurants, the tax rate has been reduced from 12 percent to 5 percent.
For example, a customer used to pay 18 percent GST for a gulab jamun costing Rs 75 for which he paid bill worth Rs 88.50. Now, the same customer, at 5 percent GST, will pay a total bill of Rs 78.75. Similarly, the rate of other food items has also reduced. Earlier, the rate of butter chicken, mixed vegetables, paneer butter, corn palak and dal makhani was Rs 353, Rs 176, Rs 336.3, Rs 291.46 and Rs 312.4 respectively. But now its prices are Rs 314, Rs 156, Rs 322.05, Rs 279.11 and Rs 303.4 respectively.
Prithivi Arora, a businessman who visited Indian Coffee House, New Market, for lunch with his friends tolda Free Press, “Yes, it is a big relief especially for people like us who often travel for business.”
Anil Katara, a teacher who visited Laziz Hakeem, MP Nagar, Zone 1, said, “I read the news from mazedia. I visit the restaurant frequently. Earlier, I had to a pay 18 percent tax for a food item but now I will have to pay 5 percent. So, it is a big relief especially for middle class peopale. It is a wise decision of government.”
“The prices of every item are increasing every day. But the decision of government gave a big relief. I am happy to hear that the price of food item has reduced,” said Rashmi Verma, a housewife who visited Milan Restaurant and Catering on Wednesday.
“We welcome the reduction in GST slab from a very high 18 percent in an AC restaurant to 5 percent without any distinction of the air-conditioning. And we started implementing the new rule, issued by the government from today morning. It is good for customers as well as for us,” said T D Pandey, manager of Laziz Hakeem, MP Nagar, Zone 1. He added, “We have been facing loss for the past four months. I hope the decision will bring our business back on track.” The new tax rate is applicable to all AC and non-AC restaurants, except those set up in five-star hotel restaurants.