GoM Suggests Cut in Tax Under Composition Scheme
The Group of Ministers set up to make GST composition scheme more attractive on Sunday suggested lowering tax rates for manufacturers and restaurants under the plan to 1%. At present, while manufacturers pay GST at 2%, the rate for restaurants is 5%. Traders currently pay 1%. The GoM headed by Assam finance minister Himanta Biswa Sarma has also suggested doing away with the tax rate distinction between AC and non-AC restaurants, those which are not covered under composition scheme, and tax them at 12%. It also suggested that hotels which has room tariff of more than `7,500 should attract 18% tax rate. Composition scheme is open for manufacturers, restaurants and traders whose turnover does not exceed Rs 1 crore.
The Economic Times, New Delhi, 30th October 2017