Patna: Eating out has become cheaper and city restaurateurs are on cloud nine, as they see more business ahead.

The GST council has slashed GST rates on all restaurants (except those having a room tariff of Rs 7,500 or more) to a uniform 5 per cent - from the earlier 12 or 18 per cent.

"Introduction of GST had only benefited us because in Bihar, before GST, customers were being charged 15 per cent VAT and 6 per cent service tax on the total food bill," said Yellow Chilli restaurant director Quazi Rumi Ekta. "So, customers were being charged 21 per cent tax, which dipped to 12 or 18 per cent with GST and now with the GST council's decision, it is further down to 5 per cent. This would only boost business," Quazi said.

He said that after demonetisation and GST, many foodies had gone into a shell, as there was confusion about the tax structure. "But now that the tax slab has gone down further, we are expecting more guests," Quazi said.

Asked if restaurants would pass on additional burden on customers following withdrawal of input tax benefit on restaurants, Quazi said it would not affect prices as that was strictly between the merchant and government.

Pind Baluchi general manager Anand Jha also hailed the decision. "This is a very progressive step by the government. Meals would now be cheaper, giving residents more reasons to dine out," Anand said.

"Prices of food-items had gone up," said Vivek Kumar, a businessman who had come with his family to dine at a restaurant on Boring Road. "This move will certainly help both restaurateurs and customers."

Vivek's wife Smita Singh hoped the government would also bring down GST rates on other commodities like electronic goods.