The GST on your restaurant bill will now be 5 per cent, down from the 12 or 18 per cent earlier. The tax break-up will be 2.5 per cent State GST (SGST) and 2.5 per cent Central GST (CGST).
It is supposed to come into effect from November 15. Some establishments under the AHAR umbrella may open a few hours late that day, as the software is being configured for the new rates.
Prices on the menu will remain the same; it is a customer’s overall bill that is coming down.
The 5 per cent GST is not applicable for restaurants inside five-star hotels. Hotels with tariffs over R7,500 will be taxed at 18 per cent.