Restaurants overcharging you despite GST rate cut? Here’s what to do

New Delhi: In a major revamp of the Goods and Services Tax (GST) tax structure, the government had earlier this month decided to fix the GST rate at 5 percent for all restaurants and not give them input tax credit.

It also decided that restaurants in starred-hotels will charge 18 percent tax with input tax credit, those in lower category hotels to charge 5 percent GST without ITC.

However, some restaurants are still not passing on the benefit of the rate cut to the consumer. On the contrary, reports are pouring from several counters that many restaurants have increased their prices post the reduction in GST rates.

If you feel that restaurants are overcharging you despite GST rate cut, you can flag your grievances on many platforms.


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