55th GST Council Extends Concessional 5% GST Rate for Inputs used in Food Preparation

The GST Council has extended the concessional 5% GST rate for inputs used in food preparation, benefiting restaurants, caterers, and foodservice providers. This decision is aimed at lowering operational costs for businesses in the food sector and ensuring the affordability of food items for consumers. The concessional rate applies to essential ingredients used in preparing food and is part of a broader effort to ease the financial burden on businesses in the hospitality and foodservice industry. This move aligns with the government's objective of promoting the growth of the food sector and making dining and catering services more accessible and affordable. The extension of the concessional rate will support the sector’s recovery post-pandemic.