New Delhi: Now on, pay through the nose for eating out in Karnataka


New Delhi, May 20 (DHNS): Eating out at a non-AC restaurant in Karnataka will be three times costlier, while AC restaurant bills will almost double after the GST roll out on July 1.

Staying in hotels, except five-star, will be cheaper by a few hundred rupees under GST regime as the GST Council on Friday pegged the tax rates for hotels other than five-star at 18%.

Karnataka currently levies only a 4% VAT on non-AC restaurants and no service tax. Under GST regime, all non-AC restaurants will be taxed at 12% after all the local levies are subsumed under one tax.

On AC restaurants, the state levies a total of 10%, including service tax at 6%. Post GST, a cumulative 18% will be levied on AC restaurants which also serve liquor.

Staying in hotels across Karnataka will, however, be much more cheaper because the state now levies a luxury tax of 8% even on hotels with tariff below Rs 1,000 a night.

Under GST regime, stay in hotels charging tariff below Rs 1,000 a night is tax exempt.

A 12% tax is proposed to be levied on hotels with tariff between Rs 1,000-2,000 a night under the GST regime. In Karnataka, 17% tax is being levied on these category hotels now.

Staying in five-star hotels will, however, be costlier in Karnataka as the new GST proposed a 28% levy, while the state government taxed these luxury hotels only at 21%.

Chewing gums, chocolates, shampoos are luxury items

Chewing gums, chocolates, shampoos and razors are luxury items under the GST.

The GST Council on Friday put these commodities in the bracket of the highest 28% tax rate.

Items such as goggles and cookers have also been placed in the same tax bracket.

The GST Council had earlier said that only luxury and sin goods would be taxed at 28%.

It had fixed five slab rates at 0%, 5%, 12%, 18% and 28%. The council had also said that all the cess would be subsumed in the GST, but the fine print on Friday suggested that cess would be levied in the range of 1% to 15% on cars, including luxury vehicles.Some of the sin goods such pan masala will attract a cess of over 200%. 

  

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Comment on this article

  • Vincent Rodrigues, Katapadi/Frazer Town,Bangaluru

    Sun, May 21 2017

    This will negatively effect our hotel industries and great burden to the customers too

    DisAgree [1] Agree [2] Reply Report Abuse

  • MILAN, LUCERNE

    Sun, May 21 2017

    AFTER THIS. MARRIAGE HALL WILL BE FULL OF NON INVITEES. SO THAT THEY CAN HAVE FREE FOOD.

    DisAgree [1] Agree [4] Reply Report Abuse

  • Aubb, Kuwait

    Sun, May 21 2017

    Feku Raj has once again made the common man a scape goat by taxing essential commodity upon which many lives depend upon.

    High time to get rid of BJP from face of India!

    DisAgree [1] Agree [2] Reply Report Abuse

  • nks, Mlore

    Sun, May 21 2017

    1. It is only tax component in some cases is getting increased. In no case the total price will be doubled or triples as claimed here.

    2. As one of the comments many hotels may not get impacted as this is only of r>50 Lakhs turn over hotels.

    DisAgree Agree [3] Reply Report Abuse

  • NN, Mangalore

    Sat, May 20 2017

    Carry out or catering from AC restaurant will carry 18% tax and whereas non-AC restaurants will be charging 12% tax. Right?

    DisAgree [1] Agree Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, May 20 2017

    Only Ambani, Adani, Mallya, Yeddy & Gadkari are getting rich ...

    DisAgree [1] Agree [10] Reply Report Abuse

  • V.gangadharan, Kerala/karnataka (Dakshina kannada)

    Sat, May 20 2017

    This is very unfortunate the Modi Government doing middle class family's especially senior citizens Thank you modi ji

    DisAgree [1] Agree [5] Reply Report Abuse

  • V.gangadharan, Kerala/karnataka (Dakshina kannada)

    Sat, May 20 2017

    This is very unfortunate the Modi Government doing middle class family's especially senior citizens Thank you modi ji

    DisAgree [1] Agree [5] Reply Report Abuse

  • V.gangadharan, Kerala/karnataka (Dakshina kannada)

    Sat, May 20 2017

    This is very unfortunate the Modi Government doing middle class family's especially senior citizens Thank you modi ji

    DisAgree Agree [3] Reply Report Abuse

  • Dr Mohan Prabhu, LL.D, QC, Mangalore (Kankanady)/Ottawa, Canada

    Sat, May 20 2017

    GST is supposed to be revenue neutral. Looks like hotels and restaurants are making a killing (or killing themselves out of business). Time for dabbawallas from Mumbai to move in take lunch time business out of the hotels, so office workers can have home=cooked meals, be it from their own families or others.

    DisAgree [4] Agree [6] Reply Report Abuse

  • chris, Mangalore

    Sat, May 20 2017

    What about Tax on Air,Loo and death that is exempted or that will come under in which tax bracket

    DisAgree [2] Agree [17] Reply Report Abuse

  • Dylan, Mangalore

    Sat, May 20 2017

    Dear friends why eat outside?
    Eat at home and enjoy good health. Eating out will lead to more sickness and in turn hospitals, doctors and pharma companies will make money.

    DisAgree [6] Agree [30] Reply Report Abuse

  • MILAN, LUCERNE

    Sat, May 20 2017

    ONCE IN A WEEK IS BETTER TO EAT OUTSIDE FOOD.

    BUT AFTER THIS. MANY PEOPLE WILL THINK TWICE.

    DisAgree [2] Agree [23] Reply Report Abuse

  • Sunil Dsouza, Mangalore

    Sat, May 20 2017

    The GST is applicable only to the restaurants who's annual turnover is more than Rs. 50 lakhs. So all small time restaurants, eateries are spared.

    DisAgree [4] Agree [9] Reply Report Abuse

  • Dev, Mangalore

    Sun, May 21 2017

    It is worded below 50 lakh which means it can cover all those who are below that bracket as well unless specifically mentioned in the final draft by F M.

    DisAgree Agree Reply Report Abuse

  • Evans Christopher Sumitra, Udupi/ New York, USA.

    Sat, May 20 2017

    These taxes are killing but you have to survive somehow or the other. There is no escape from it.

    DisAgree [4] Agree [23] Reply Report Abuse

  • MILAN, LUCERNE

    Sat, May 20 2017

    NOW MANY HOTEL OWNERS. MIGHT TRANSFORM THEIR RESTAURENT TO GYM.

    DisAgree [2] Agree [13] Reply Report Abuse

  • MILAN, LUCERNE

    Sat, May 20 2017

    PUBLIC TAX PAYER WILL PAY MODIS AND JAITLEYS BILL. THESE PEOPLE HAVE NO PROBLEMS.

    ONLY COMMON MAN HAVE PROBLEMS.

    RAHUL GANDHI ALSO HAVE NO PROBLEM. HE HAVE DALIT HOUSE TO EAT FOR FREE

    DisAgree [7] Agree [41] Reply Report Abuse

  • Aubb, Kuwait

    Sat, May 20 2017

    @ Milan,

    Nalini will continue having fully subsidized Goli Baji at Parliament canteen too!!!!!!!!!!!

    DisAgree [6] Agree [18] Reply Report Abuse

  • Praveen, Mangalore

    Sat, May 20 2017

    God save our country under BJP Rule...

    DisAgree [12] Agree [50] Reply Report Abuse

  • Shankar, Mangalore

    Sat, May 20 2017

    People have choices.
    In Mangalore, you can chose Yashraj at Falnir junction or Coral in ocean pearl or Cardamom in gateway.
    if you don't want to pay the taxes on huge bills, chose the one which is cheaper.
    If you don't want to pay the tax at all, go home with a bottle from any wine shop and some podi from Balli's!

    DisAgree [19] Agree [15] Reply Report Abuse

  • geoffrey, hat hill

    Sat, May 20 2017

    Among resident Indians mainly corporate executives and ministers/MPs are privileged to stay at 5 stars which means burden to be borne by common man.

    DisAgree [2] Agree [33] Reply Report Abuse

  • MILAN, LUCERNE

    Sat, May 20 2017

    BJP WILL INDIA POOR AGAIN.

    DisAgree [10] Agree [54] Reply Report Abuse

  • Rajesh, Mangalore

    Sat, May 20 2017

    Some roadside darshinis will not be affected as they generally do not register for any taxes. the threshold for GST registration is much higher than the current VAT registration, therefore many will escape the rigours of taxes.

    DisAgree [6] Agree [17] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, May 20 2017

    So eat only in roadside ...

    DisAgree [6] Agree [41] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, May 20 2017

    More Suicides ...

    DisAgree [13] Agree [51] Reply Report Abuse

  • Rajesh, Udupi

    Sat, May 20 2017

    If someone commits suicide just for not able to eat out in hotels due to high cost, he is idiot anyways.

    Who depends on hotel food on every day basis? Those who are away from hometown, or where the woman at home is not able to cook tasty food or lazy! Let them adjust home food, all will be fine. ... LOL

    DisAgree [45] Agree [15] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, May 20 2017

    Have some koman sense.
    If food prices are high people will stay away from hotels.
    Hotel employees will commit suicide ...

    DisAgree [12] Agree [46] Reply Report Abuse

  • The Guru, Mangalore

    Sat, May 20 2017

    Jossey Saldanha, Mumbai

    People who have money and who want to eat in hotels will not stop eating irrespective of what is the tax rate..

    Government increased tax on cigarettes and alcohol, did the employees of this sector committed suicide did the sales go down..

    DisAgree [16] Agree [24] Report Abuse

  • Nish, Mlore

    Sat, May 20 2017

    It is high time that Men learn to cook

    DisAgree [9] Agree [20] Reply Report Abuse

  • Suresh, mangalore

    Sat, May 20 2017

    Very sexist remark! So only women are supposed to cook "tasty" food otherwise they are lazy?
    There are a lot of senior citizens who depend on hotel food on a regular basis since they can't cook at home. Of all possible things in the country, food is one thing which should not be taxed so high.

    DisAgree [3] Agree [37] Reply Report Abuse

  • Rita, Germany

    Sun, May 21 2017

    @Suresh mangalore,Women are not become lazy,But men too cook best food if only they want and give some efforts.Mostly men are lazy and let women cook in mangalore specially.but in kerala ,many men cook wonderful food.when men go to foreign countrys automatically they have to learn to cook ,.In mangalore,I observed,many dont even mind the cost when one goes to hotel .

    DisAgree Agree Report Abuse


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