Thiruvananthapuram: Food prices in restaurants will be reduced from today after the GST council decided to cut the GST on food items from 12 per cent to 5 percent. The prescribed uniform 5 per cent tax on all restaurants will come into force from today.

When the central government implemented GST across India, 12 per cent GST on food bill was levied in non-AC restaurants and 18 per cent in AC restaurants. The union government has decided to cut GST rates on restaurants after the price hike in food triggered protest among the public.

“Hotels and restaurants in Kerala will charge 5 percent GST on the bill from Wednesday,” said Kerala Hotel and Restaurant Association state president Moideenkutty Haji.

Meanwhile, hotel owners demanded that it is necessary to decrease compound tax from 5 per cent to 2 per inorder to reduce the price rate.

As many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent. Hence, prices of chocolate, shampoo, health drinks, marble, cosmetics, wrist watch, coffee and battery will be reduced from Wednesday.

GST free items at Indian Coffee House

Indian Coffee House Director Board has decided to exclude GST for many items. Tax will not be charged for meals in AC section. Price for meals with 12 percent GST was Rs 78.40. But with the new decision, the prices will be reduced to Rs 70.

Meanwhile, the customers need to pay GST for chicken biriyani, masala dosa and meals in non-AC section. As the GST reduced to 5 percent, the price of meals in non AC section will be Rs 42.

After excluding GST, the price of tea will be reduced to Rs 8 from Rs 9 and customers can save Rs 6 for poori-baji at Indian Coffee House.