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

The Logical Indian Crew

July 13th, 2017 / 4:39 PM

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.


Contributors

Written by :

Edited by :

Share your thoughts..

Related Stories

Raghuram Rajan

Don’t Cut GST Rates So Frequently, Let The Economy & Tax System Stabilise First: Former RBI Chief Raghuram Rajan

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

Education

National Education Body Demands Rollback Of 18% GST On Sector; Know GST’s Impact On Education

Fee Hike Private Schools

Delhi: Govt Clears 15% ‘Interim’ School Fee Hike In Private Schools

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

GST Identification Number

Know How To File For GST Identification Number To Avail Facilities Under GST

Latest on The Logical Indian

Exclusive

South Delhi: Resident Welfare Association Claim That Public Parks Are Being Used For Political Activities

News

Ajit Doval’s Son Files Defamation Complaint Against Jairam Ramesh & Caravan Magazine

News

India’s Inequality: Country’s Richest 1% Grew Their Wealth By 39% In 2018, Says Oxfam Report

Get Inspired

All Women Assam Rifles Contingent To Script History, Will March Past Rajpath This Republic Day For The First Time

News

Mukesh Ambani Announces Plan To Take On Online Retail Giants Amazon And Flipkart

Awareness

With USA Looking To Tighten Visa Rules, What Lies Ahead For Spouses Of H-1B Holders?

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.