Applicable GST tax rates on Restaurants

Applicable GST tax rates on Restaurants

Tax rate will be applicable from 15th Nov 2017, as per given table.

S NoServicesRate of Tax
1All stand-alone restaurants, whether air conditioned or not5% without ITC
2Food parcels (or takeaways)5% without ITC
3Restaurants in hotel premises having room tariff of less than Rs. 7500/- per unit per day5% without ITC
4Restaurants in hotel premises having room tariff of Rs. 7500/- and above per unit per day18% with full ITC
5Outdoor catering18% with full ITC
6Accommodation in Hotel having tariff between Rs. 1000 but less than Rs. 2500 per day6% with full ITC
7Accommodation in Hotel having tariff between Rs. 2500 but less than Rs. 7500 per day18% with full ITC
8Supply of Foods and other services in premises specially arranged for organizing a function together with renting of such premises.18% with full ITC
9Accommodation in Hotel having tariff More than Rs. 7500 per day28% with full ITC

NOTIFICATION NO. 46/2017-CENTRAL TAX (RATE)DATED 14-11-2017

In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, —

(i) against serial number 3, in column (3), in item (vi), for the words “Services provided”, the words “Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided” shall be substituted;
(ii) against serial number 7,—
(a) for item (i) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely:—
 (3)(4)(5)
 “(i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent.   Explanation.— “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5Provided that credit of input tax charged on goods and services used in supplying the service has not been taken   [Please refer to Explanation no. (iv)].”;
(b) for item (iii) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely:—
 (3)(4)(5)
 “(iii) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent.   Explanation.— “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 9-“;
(c) the item (iv) in column (3) and the entries relating thereto in columns (3), (4) and (5), shall be omitted;
(d) in item (ix), in column (3), for the entry, the following entry shall be substituted, namely:—
  “(ix) Accommodation, food and beverage services other than (ii), (iii), (v), (vi), (vii) and (viii) above.
  Explanation.— For the removal of doubt, it is hereby clarified that, supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent shall attract central tax @ 2.5% without any input tax credit under item (i) above and shall not be levied at the rate as specified under this entry.”;
(iii) against serial number 26, in column (3), in item (i), after sub-item (h), the following shall be inserted, namely:—
‘(i) manufacture of handicraft goods.
  Explanation. — The expression “handicraft goods” shall have the same meaning as assigned to it in the notification No. 32/2017 – Central Tax, dated the 15th September, 2017published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1158 (E), dated the 15th September, 2017 as amended from time to time.’.

Relief to Business in GST 23rd Council Meeting

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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