Govt Clears Confusion On GST Rates For Restaurants: Know About It

The Logical Indian Crew

July 13th, 2017

Source: ndtv | Image credits: twitter

In the wake of several consumers voicing their confusion on social media regarding GST rates for restaurants and the relation of the same to VAT and service tax, the government has come out with a clarification about GST rules for restaurants.

The food ordered at restaurants attracts two tax rates – 12% and 18% – depending on whether if it is an AC restaurant or a non-AC restaurant, and whether the restaurant has the license to serve alcohol or not.

The 12% and 18% GST rates include both CGST (Central GST) and SGST (State GST).

  • For the GST tax rate of 12%, 6% is CGST and the remaining 6% is SGST.
  • For the GST tax rate of 18%, 9% is CGST and the remaining 9% is SGST.

The 12% GST rate is for

  • non-AC restaurants
  • roadside eateries that don’t serve alcohol,
  • local delivery restaurants.

The 18% GST rate is for

  • the restaurants with full air-conditioning (both with or without alcohol),
  • non-AC eateries that serve alcohol.

The CBEC has also clarified that “the actual GST incidence will be lesser due to increased availability of input tax credit.”

Sandeep Sehgal, director-tax and regulatory at Ashok Maheshwary & Associates LLP, told NDTV that many input credits that weren’t yet available, will now be available for utilising against GST liability.

The tax department has also launched the app GST Rate Finder. Available on Google Play platform for Android handsets, the app enables users to find the applicable GST rates on goods and services. To know more about how this app can be downloaded and used, click here.

Share your thoughts..

Propelled by


This Women’s Day Spread The Message Of Equality

Related Stories


Kerala: Restaurants That Serve Free Food During The Day & Turn Into Libraries At Night

Know Why The Recent Tax Cut In GST For Restaurants Won’t Benefit Consumers Much

Non-Registered Restaurants Duping Customers By Charging Them GST; Here’s How You Can Verify Your Bill

18% GST On Even Takeaways From Non-AC Section Of Restaurant If It Has AC In Any Room

Govt Launches GST Rate Finder App: Here’s How You Can Use It

GST Council

GST Rates On 66 Items Revised By GST Council; Know About It

Latest on The Logical Indian


Confusion Looms 65-Yr-Old’s Beheading In Bihar; Contradiction Between BJP’s Claims & Police Report


Brazilians Mourn The Assassination Of Rights Activist & State Critic


Govt To Form Regulatory Body To Monitor News On Social Media, Online Content: Smriti Irani


UP: 500 Quintals of Mango Wood Being Burnt In Mahayagna To “Purify Air”


West Bengal: 16-Yr-Old Dies In Ambulance Where Mechanic Was Stationed As Doctor


In A First, Kerala Govt Gears Up To Make Tribals Instructors Of Literacy Mission