New GST Rates: How Much Will You Save On Your Next Restaurant Bill?

Love dining out? Your next restaurant visit is set to become noticeably cheaper. In a landmark decision, the GST Council, chaired by Finance Minister Nirmala Sitharaman, has approved the biggest overhaul of India's Goods and Services Tax (GST) since its inception in 2017. The reforms aim to simplify tax slabs and boost domestic spending, bringing good news for consumers and restaurant owners alike.

Also Read: Revised GST For Food: Complete List Of Foods That Will Get Cheaper And Costlier Starting September 22

Simplified Tax Slabs

On Wednesday, the Council announced a major revision in GST rates, limiting the slabs to 5% and 18%, with a special 40% slab reserved only for select items like high-end cars, tobacco, and cigarettes. Most notably, GST on restaurant meals is a flat 5% effective September 22, down from the earlier range of 12% to 18%, depending on the restaurant category.

Impact On Dining Out

This tax reduction means family dinners, festive outings, and casual dining experiences will become more affordable for the average consumer. The move is expected to revive footfall in restaurants, many of which had seen demand dip due to higher taxes over the years.

Also Read: Will Flights And Hotels Get Cheaper Now? How Revised GST Rates Impact Travel

Food Items With Zero GST

The Council also revised tax rates on several food and beverage items. Staple foods such as:

• All types of chapatis and paranthas
• Ultra-high temperature (UHT) milk
• Paneer
• Pizza bread
• Khakhra

These are now exempt from GST, down from the earlier 5%.

Everyday Items At 5% GST

Several everyday products will now attract a reduced GST of 5% instead of the earlier 12% or 18%, depending on the item. This list includes:

• Butter and ghee
• Dry nuts
• Condensed milk
• Sausages and meat
• Sugar-boiled confectionery, jams and fruit jellies
• Tender coconut water
• Namkeen
• Drinking water in 20-litre containers
• Ice cream, pastries, biscuits, cereals and sugar confectionery
• Other fats and cheese will also now attract 5% GST, down from 12%.

Also Read: GST Rates On Food Revised: Key FAQs Answered By Finance Ministry

Healthier Alternatives At Lower Tax

Plant-based and soya milk drinks have seen their tax rates reduced from 18% and 12% respectively, to a uniform 5%, promoting healthier alternatives at more affordable prices.

What This Means For Diners

For diners, this GST overhaul brings more reasons to enjoy eating out without worrying about the extra tax burden at mealtimes anymore.