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

The Logical Indian Crew

August 16th, 2017

Image credits: bigfoodie, livemint

The Central Board of Excise and Customs (CBEC) has clarified that all supplies from a restaurant will be charged GST as if from an AC restaurant even if the restaurant has AC on only one floor or in only room.

A uniform goods and services tax (GST) rate of 18% will be charged on takeaways as well as food served from a non-AC area of a hotel or a restaurant if any of its part has a facility of air conditioning.


GST, which was rolled out on July 1, provides for two taxation rates from restaurants – 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.

Now, the CBEC has clarified that GST rate of 18% will be levied by restaurant-cum-bars even when only the first floor area is air-conditioned and used for serving food and liquor while the ground floor only serves food and is non-AC.

“If any part of the establishment has a facility of air conditioning, then the rate will be 18% for all supplies from the restaurant,” it said.

With regard to tax rates that would be charged for take-away food from such restaurants, the CBEC said, “Tax has to be charged at 18% on supplies of food made from their takeaway counter.”


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

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