18% GST On Even Takeaways From Non-AC Section Of Restaurant If It Has AC In Any Room
August 16th, 2017
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.”