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GST: Dining Out, Hotel Room Tariffs to be Cheaper; Cars, ACs to Get Costlier

Dining out at restaurants and hotel room tariffs will get cheaper, along with essential items like vegetables, milk and food grains, under the soon-to-be-rolled-out Goods and Services Tax regime. Cars, two-wheelers, air conditioners and make up products, on the other hand, will become more expensive.

Non-AC restaurants will have to pay a 12% tax rate while their AC counterparts will have to pay 18%. Considering that currently dining out attracts a VAT as well as service tax, which adds up to more than 20%, the burden on consumers is likely to reduce under GST. Hotel rooms with a tariff of below Rs 1,000 will be exempt from tax, while those between Rs 1,000 and Rs 2,500 will attract a tax rate of 12%, and those between Rs 2,500 and Rs 5,000 will be taxed at 18%.

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