Under the new GST rates, Non-AC restaurants will be charged at 12%, while AC restaurants will be charged at 18%. 5-Star restaurants will be charged a Luxury Tax of a whopping 28%. Restaurants with a turnover less than 50 lakh INR heave a sigh of relief, as they would be levied a GST rate of 5%.
Hotels and lodges having tariff less than 1000 INR will be taxed at 5%, while those between 1000-2500 will be charged at 12%. Hotels between 2500-5000 will be charged at 18%, and hotels having tariff above 5000 will be considered luxury hotels and charged at 28%.