New GST Rates Cut Restaurant Meals To 5%, Dining Out Becomes Cheaper

Brief by Shorts91 Newsdesk / 01:08pm on 04 Sep 2025,Thursday India

Eating out will now cost less as the GST Council has cut taxes on restaurant meals to a flat 5%. Earlier, the rate ranged from 12% to 18% depending on the type of restaurant. Finance Minister Nirmala Sitharaman said the new rules will help families and boost domestic spending. The change takes effect from September 22. Staple foods like chapatis, paneer, and milk are now tax-free. Butter, ghee, nuts, and pastries will attract 5% GST, down from higher rates. Plant-based drinks are also cheaper. The move is expected to revive demand in restaurants across India. (PC: HT)

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