After the introduction of GST, food in restaurants became cheaper, the government told how much benefit the common man got

For foodies, eating at your favorite restaurant is a great way to pass the time. We love to relish our favorite food items in a relaxing environment. However, if we compare how much we are spending on eating at restaurants right now. And how much used to be done 10 years ago, it may surprise you.

Savings of Rs 150

The Press Information Bureau of India has released their weekly newsletter, in which they analyze savings on restaurant bills. He has shown the calculation of restaurant bills before and after the introduction of GST. And its results are quite interesting.

This newsletter was shared on Twitter by the Press Information Bureau of India on March 24, 2023. He has written in New India News that one country, one tax system has made eating in restaurants more affordable. He claimed that about Rs 150 can be saved on every Rs 1000 restaurant bill.

What is calculation?

In the month of January, a decision by the GST Authority for Advance Rules revealed that the five per cent rate would be applicable for sit-in restaurant, takeaway and doorstep delivery. So, according to the calculation, in the year 2014, a bill of Rs 1000 in a restaurant will actually amount to Rs 1303.5.

This will include 10 percent service charge, 6.5 percent service tax, 14.5 percent VAT and 0.4 percent cess, which includes Krishi Kalyan Cess and Swachh Bharat Cess. Meanwhile, after the GST ruling, the service charge of 10 percent and the flat rate of GST at 5 percent remain the same. This makes the total bill amount only Rs.1155. So according to the government report, the customers can save around Rs.150.

Let us tell you that if you are ordering food from Railways or IRCTC, then five percent GST has to be paid. Similarly, standalone restaurant or standalone outdoor catering service also attracts GST at the rate of 5 per cent. On the other hand, if the restaurant or outdoor catering service is associated with a hotel where the room rent is less than Rs 7,500, in that case also you will have to pay 5% GST.