GST Tax rate on restaurants, bars, hotels etc – Impact of GST tax rate on restaurant food bill
by Paras Mehra 6.99K
1.0 Introduction
Under GST, there are various categories defined for restaurants according to facilities and amenities. Further, for each of the category the GST rate is different and hence, it is important to understand your restaurant service to charge a correct GST rate in India.
2.0 Categories of restaurants and the tax rate
The GST tax rates according to the facilities are described as under:
- Restaurant with no AC in any part thereof and not serving liquor: The tax rate is 12% (6% CGST, 6% SGST)
- Restaurant with AC or serving liquor: The tax rate is 18% (9% CGST, 9% SGST)
Let us move forward and understand more related cases.
3.0 GST tax rate on online food order or food parcel cooked as per order
The GST tax rate in this category shall depend upon the restaurant which is serving the food. In case it is delivered from AC restaurant, then tax rate shall be 18%.
4.0 GST tax rate on order/parcel of pre-packed and pre-cooked nankeens sold from restaurants -Haldiram Bhujia, Peanuts etc
The GST tax rate for this category is 12%.
5.0 GST tax rate for restaurant covered under composition scheme
Composition scheme is a benefit extended by the government to small tax payers up to turnover of Rs.75 lakh (50 lakh in case of special category states) to pay tax at a concessional rate subject to some conditions.
Further, the composition scheme does not apply to services except in case of restaurant. The GST tax rate on restaurant covered under composition scheme is 5% (2.5% CGST plus 2.5% SGST).
6.0 Conclusion
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