Over two lakh restaurants will remain closed across Tamil Nadu as a protest against the Goods and Services Tax on May 30. 

Hotels and restaurants in Kerala and Pondicherry may also join its Tamil Nadu counterparts.

The GST will tax services under four slabs – 5, 12, 18 and 28 percent – compared to the current 15 percent uniformly levied on all services. Finance Minister Arun Jaitley in a two-day GST council meeting said that most services would be split up into 12-18 percent.

Restaurants with an annual turnover of less than Rs 50 lakh will fall under the 5 percent tax slab. Non- AC food joints will be taxed at 12 percent and AC restaurants with liquor licenses will be taxed at 18 percent. 

In a press conference on Thursday in Coimbatore, Tamil Nadu, Hotel Owner President D Srinivasan said that the proposed rates were too high and would result in a drop in their profits.

The hotel owners will demand a 5 percent tax slab in the upcoming GST review meeting on June 3 in New Delhi.

The GST has proposed that restaurants with a turnover less than Rs 20 lakh will be exempt from tax and five star and luxury hotels will be taxed at 28 percent. Casinos will also come in the 28 percent tax bracket.