The New Goods and Services Tax (GST) regime which was implemented on July 1 across India has affected the customers directly. GST has affected the restaurant bills putting pressure on customers by making it expensive. The government confirms that it will charge 18% GST on takeaways as well as food served from a Non-AC area if any part of the hotel or restaurant has the AC facility.
According to the GST which is rolled out from July 1 will charge 12% on food bill in Non-AC restaurant. The tax rate for restaurants with the liquor license will charge 18% while five-star hotels will charge 28%.
The Central Board of Excise and Customs (CBEC) have clarified the rates on GST that are charged by restaurant cum bars. Taking an example where the first floor of the restaurant is air conditioned (AC) which is used for serving and alcohol while the ground floor is Non-AC. The CBEC said, in the above case we will charge 18% irrespective where the supply is made either from the first floor or the second floor.
Coming to the tax rates that charge for the take away from such restaurants, CBEC said, “Tax has to be charged at 18 per cent on supplies of food made from their takeaway counter.” Likewise, the restaurants providing alcohol will be not eligible for composition scheme.
With the implementation of the new regime, customers have to pay 12% tax if they eat in a Non-AC restaurant. If you are in AC restaurant, you have to pay 18% tax whether alcohol is served or not.