Eating Out To Get Cheaper, GST Rate On Restaurants Slashed To 5%. #patialapolitics The GST Council has decided to cut tax rate for restaurants to a flat 5 percent, who don’tclaim Input Tax Credit. The new tax rate would be applicable to both AC andnon-AC restaurants, except those in five-star hotels. Outdoor catering rate has been fixedat 18 per cent.This was decided at the 23 rd GST Council meeting held inGuwahatitoday.GST rate for hotels with Rs 7,500 room rent and above has been fixed at 18 per cent with input tax credit.Under the previous GST structure, it all boiled down to 12 per cent GST for non-AC restaurants and 18 per cent GST forAC restaurants. In case of five-star hotels, the charge was much more – 28 per cent.