A uniform goods and services tax (GST) rate of 18 per cent will be charged on take aways as well as food served from a non AC area of a hotel or restaurant if any of its part has a facility of air conditioning, the government said.
The new GST regime, which was rolled out from July 1, provides for levy of 12 per cent on food bill in non AC restaurants.
The tax rate for AC restaurants and those with liquor licence will be 18 per cent while 5 star hotels will charge 28 per cent GST. The Central Board of Excise and Customs (CBEC) has clarified through an FAQ on the GST rates that will be levied by restaurant cum bars where the first floor area is air conditioned and used for serving food and liquor, while the ground floor only serves food and non AC.
The CBEC said tax will have to be charged at 18 per cent irrespective of from where the supply is made, first floor or second floor.
“If any part of the establishment has a facility of air conditioning, then the rate will be 18 per cent for all supplies from the restaurant,” it said.
Source: The Business Standard, New Delhi, 14th August 2017
Below are some pointers to note (summarized) :
1- Restaurants with AC facility are chargeable to GST at the rate 18% which applies even if ONLY A PART of THE RESTAURANT IS AC....
2- Restaurants which are completely NOT using AC will attract 12% rate for GST....
3- Take-away (where customer come to get the parcel packed or deliver by restaurant) will attract GST rates based on the point no 1 & 2 above....
4- GST rate will be used 18% even if the AC facility is not available at take-away areas BUT AC is being used in other part of the restaurant, and also for those having liquor license,
5- Other than point no 4. there will be a 12% charge on such take-aways,
6- Liquor license restaurants can not opt composition scheme (however it is not there in this text above however it was relevant for the topic, hence added this point)
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