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If the consumer has to benefit on the pricing front, the rate cut will have to be tax efficient to restaurants: NRAI President LATEST NEWS :  The National Restaurant Association of India (NRAI) is likely to make a representation to the government over the next two days regarding the passing on of benefits of the lower goods and services tax (GST) rates to consumers. NRAI has the country’s top fast-food chains, among others, as its members. The government on November 10 had slashed the GST on AC and non-AC restaurants — excluding five-star hotels — to 5 per cent from the earlier 18 per cent and 12 per cent, respectively. But the input tax credit, a facility to set off tax paid on inputs with final tax, was withdrawn with the November 10 revision, prompting restaurant chains, including McDonald's to withhold passing the full benefit of the tax cut. Their argument was that the non-availability of input tax credit pushed up costs by 10-12 per cent, implying that ...

Centre gives approval for the creation of the posts of chairman and technical members of the National Anti-profiteering Authority under GST LATEST NEWS : The Union Cabinet on Thursday approved setting up of a National Anti-profiteering Authority under the GST , as it seeks to ensure that consumers get the benefit of reduced prices under the new indirect tax regime. Union Minister Ravi Shankar Prasad said currently there are only 50 items which attract the highest tax of 28 per cent under the Goods and Services Tax (GST) regime and rates on many items have been cut to 5 per cent as well. "The National Anti-Profiteering Authority is an assurance to consumers of India. If any consumer feels that the benefit of tax rate cut is not being passed on, then he can complaint to the authority," Prasad told reporters after the Cabinet meeting. This reflects government's full commitment to take all possible steps to ensure benefits of implementation of GST to the...

In the first half of the meeting in Guwahati, the Council decided to trim the 28% bracket to just 50 items, against 227 currently LATEST NEWS  : The GST Council on Friday decided to keep only 50 items, mostly demerit, sin and luxury goods, in the top 28 per cent tax bracket, Bihar Deputy CM Sushil Modi said. In the first half of the meeting taking place in Guwahati, the Council decided to trim the 28 per cent slab to just 50 items as against 227 items currently. ALSO READ: 177 items to become cheaper as GST Council decides to trim 28% slab The second half will see discussions on easing compliance burden on taxpayers and making the composition scheme more attractive. Here are the other developments expected from the meeting: 1) Rate cut for AC restaurants: Those in the restaurant business are hoping for a much-needed relief to come their way. (Read more here) The GST Council meeting is likely to witness deliberations on a number of topics, includin...

Only 50 items, mostly demerit, sin and luxury goods, to remain in the highest tax bracket of 28% LATEST NEWS :  In a major relief to consumers and industry, the Goods & Services Tax (GST) Council on Friday decided to lower the rates for 177 items in the highest tax slab of 28 per cent. In the first half of the meeting taking place in Guwahati, the Council decided to trim the 28 per cent slab to just 50 items, as against 227 items currently. High-end items, including automobiles, washing machine, refrigerator, sin goods like paan masala and cigar are among these 50 items. This is the biggest reduction seen since the GST implementation on July 1. "We decided to also look into the remaining 62 items and see if there is a scope for reducing rates on those items as well," said a state government official. The Council decided to go beyond the recommendation of the fitment committee to thin the 28 per cent slab to 62 items and decided to additionally lower...