GST hike: Your dining bills are likely to increase, say Assam restauranteurs 

The recommendations on Goods and Services Tax (GST) rates that were made during the 47th GST Council meeting held in June come into effect today.

Eatery owners and restaurateurs of Assam feel that this could have adverse affect on prices as many of the commodities are used in the cooking of traditional Assamese food.

“’We started when cooking oil used to cost Rs 120. Now, the same commodity costs Rs 200, which is a 30% increase. Rent for restaurant space is increasing by 5% each year. Out of responsibility towards customers, we feel compelled to keep the prices low. But, if this continues, we will have to let go of some employees which will have an adverse effect on job generation,” renowned chef cum restauranteur Atul Lahkar told India Today NE.  

Lahkar says his team is studying the new GST rates following which they will decide the revised rates for their restaurant menu.

Lakhkar, who is the president of the All Assam Restaurant Association (AARA), owns three restaurants (Heritage Khorika, Hurum, and Yin-n-Yang) in Guwahati city. 

Several items will now get costlier. Here are some of the items for which you will have to shell out more money.

GST on paper knives, spoons, forks, ladles, skimmers, and cake-servers has been increased from 12 per cent to 18 per cent.

GST on centrifugal pumps, deep tube-well turbine pumps, submersible pumps, bicycle pumps will also see an increase of 12 per cent to 18 per cent.

Additionally, pre-packaged and labelled pulses, and cereals like rice, wheat, and flour (atta) will now attract 5 per cent GST when branded and packed in a unit container.

Curd, lassi, and puffed rice (cheera) would attract GST at the rate of 5 per cent when pre-packaged and labelled.

LED Lamps, lights and fixture, their metal printed circuits board will also witness a GST increase from 12 per cent to 18 per cent from today.

Moreover, GST on solar water heater and system has been increased from 5 per cent to 12 per cent.

GST on cut and polished diamonds will be increased from 0.25 per cent to 1.5 per cent, while GST on e-waste will be increased from 5 per cent to 18 per cent.

On the other hand, the GST on petroleum/coal bed methane will be increased from 5 per cent to 12 per cent.

Meanwhile, hotel accommodation priced up to Rs 1,000 per day shall be taxed at 12 per cent.

Room rent (excluding ICU) exceeding Rs 5,000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5 per cent without ITC.

On the bright side, however, the prices of some goods and services have been slashed.

Tax on the transport of goods and passengers by ropeways has been reduced from 18 per cent to 5 per cent, while renting of truck or goods carriage where the cost of fuel is included will be cheaper as the tax is reduced from 18 per cent to 12 per cent.

While GST on ostomy appliances reduced from 12 per cent to 5 per cent, the GST on several orthopedic appliances reduced from 12 per cent to 5 per cent.