Nov 10, 2017 10:55 am (IST)

Besides, making the composition scheme more attractive is on the agenda and as per the Group of Ministers (GoM) recommendations, the GST Council may decide to allow businesses in the inter-state trade to opt for the arrangement. The GoM had also suggested slashing tax rate to 1 per cent for manufacturers and restaurants opting for the scheme from 2 per cent and 5 per cent, respectively. It was in favour of doing away with the tax rate distinction between AC and non-AC restaurants, those which are not covered under the composition scheme and tax them at a flat 12 percent. Currently, non-AC restaurants are taxed at 18 per cent.