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Showing posts from June, 2017

GST on restaurant and food industry bill

GST is a unified method of indirect taxation. A “one nation one tax” slogan which will change the of taxes levied under various names like service tax, value added tax, entertainment tax, etc. These various types of charges will be combined to serve a single purpose; an indirect tax on the final product. This GST will then be divided among the Centre and State as Central GST(CGST) and State GST(SGST). Charges for each would be authorized based on income and acceptability, among other elements. Except for those goods and services that have been exempted, SGST and CGST will be applicable on all products and services. Both Centre and States would have jurisdiction for the determination of tax rates and for all taxpayers based on the threshold for products and services that have been prescribed.      The proposed rate for GST is a four-tiered structure of 5%, 12%, 18% and 28%. The hotel industry has been driven at an 18% rate.
Impact of GST
It is expected that the creation of the Goods and S…