Once again, some journalists in the country have made a mockery of themselves. This time The Hindu’s journo Serish Nanisetti exposed his knowledge or the lack of it on GST.
On 11 April 2024, Serish shared a picture of the bill from an Eid dinner he had with four of his friends. The picture showed that CGST and SGST were charged at a rate of 9%, totalling ₹1116 each, with the final amount being ₹7316. He wrote, “Went for Eid dinner with four friends. The government also joined us at the table.”
Went for Eid dinner with four friends. The government also joined us at the table. pic.twitter.com/uQmjCglZ47
— serish (@serish) April 11, 2024
Responding to his post, Tamil Nadu State Secretary of the Bharatiya Janata Party exposed the fact that Serish had been to a high-end/luxury restaurant and schooled him on the basics of GST.
Suryah wrote, “Commoners go to restaurants & pay 5% GST. Rich people like you go to star hotels & pay 18% GST.
Note:
•5% GST for AC & Non-AC restaurants.
•18% GST in restaurants located on the premises of a club or guest houses & in hotels where room tariff is more than ₹7,500.”
Commoners go to restaurants & pay 5% GST. Rich people like you go to star hotels & pay 18% GST.
Note:
•5% GST for AC & Non-AC restaurants.
•18% GST in restaurants located on the premises of a club or guest houses & in hotels where room tariff is more than ₹7,500. https://t.co/swkT0o4Fam— Dr.SG Suryah (மோடியின் குடும்பம்) (@SuryahSG) April 12, 2024
It is noteworthy that all states in the GST Council were in agreement when they established this rate for different categories of hotels. It is believed that 98% of the public frequent restaurants that charge GST at 5%.
It is a fact that before the implementation of GST, customers were paying various charges, including a 10% service charge, a 14.5% service tax, a 0.5% cess applied three times, and an additional 14.5% VAT (in places like Puducherry). However, with the introduction of GST, these complexities have been streamlined, resulting in a simplified system with a uniform 5% tax rate on restaurants and an 18% tax rate on luxury hotels.
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