RATE OF TAX FOR FOODS IN HOTELS AND RESTAURANTS
The Goods and Services Tax Act, 2017 came into force
with effect from 1.7.2017.
The restaurants will attract different rates of tax
according to the facility available and the rates of taxes for food items will attract
as shown below:
Details
|
Restaurants paying tax at compounded rates (without input tax credit)
CGST @ 2.5% and SGST @ 2.5% has to be paid without
collecting from customers
|
Restaurants with no air condition facility in any
part and not serving liquor
|
Restaurants with partial air conditioning or fully
air conditioning
(Or)
Serving liquor
|
|||
(Non AC restaurants serving no alcohol)
|
(AC restaurants
or
restaurants
serving alcohol)
|
|||||
CGST
|
SGST
|
CGST
|
SGST
|
CGST
|
SGST
|
|
Food items
served at the premises
|
--
|
--
|
6
|
6
|
9
|
9
|
Parcel cooked as
per order
|
--
|
--
|
6
|
6
|
9
|
9
|
Parcel of
pre-packed namkeens sold in restaurants
|
--
|
--
|
6
|
6
|
6
|
6
|
Parcel of
pre-cooked namkeens sold in restaurants
|
--
|
--
|
6
|
6
|
6
|
6
|
No restaurant can charge
GST at 28 per cent on food items.
Composition
Scheme
· Whose aggregate turnover in the preceding
financial year did not exceed seventy five lakh rupees.
Rate of Tax for Restaurants: 5% (CGST 2.5% + SGST 2.5%)
under Composition Scheme:
· He cannot charge the GST on invoice i.e.
tax can’t be mentioned on the invoice and collected from the buyer.
· Can not avail any tax credit
· No inter-State outward supplies of goods;
· Not providing any supply of services
·
Not
engaged in supply of Non GST Goods