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The brand new Goods And Services Tax (GST) means smaller restaurants will pay a lower tax in their sales, which will also mean less spending for customers who go there. Previously, restaurants added a higher sales tax to the bill, adding to the cost of the meal, which is not a popular thing with customers. The GST is 5%, while service tax added 15% to the bill.

Members in the GST council agreed upon the new tax, which gives restaurants that have a yearly income below Rs50 lakh would be eligible to pay just the new 5% tax. The tax is split evenly between the central GST and the state GST. Small restaurant proprietors highly approve of this because it helps them stay economically viable against much bigger competitors. It saves money for the business in terms of upkeep, as well as the money in customer's pockets.

The new GST is part of a business-friendly program to keep small businesses working together and not become hobbled by high tax rates. India's government has been based on economic liberalism, under the banner of, "One Nation, One India, One Tax." It is an incentive for more businesses, restaurants or not, to grow and hire more people.

The GST will begin in July of 2017, giving a simple tax rate and tax refund for trading goods in-state and compliance with work regulations. For locals and tourists who love going out place-to-place, it is a great deal for them and for the owner.

Orlando Accountant Fajardo And Associates can help