The Indian government has finalized GST rates for restaurants and hotels which will be based on turnover and tariffs. The GST Council have approved the new schedule of GST rates. The government clarifies new tax rate for restaurants which you can understand in an easy way through this blog.
Here is the list of GST rates clarification for restaurant
|Different circumstances of supplies by restaurants||Rate of tax (CGST + SGST)|
|Restaurant under Composition Scheme (up to aggregate turnover of Rs. 75 lakh*)||5%|
|Restaurant with no air-conditioning in any part thereof and not serving liquor||12%|
|Restaurant with partial or full air-conditioning or serving liquor||18%|
|Is there any restaurant where the rate of tax is 28%||No|
|Rate of tax on food parcel cooked as per order||As applicable to service of food in that restaurant|
|Rate of tax on parcel of pre-packed and pre-cooked namkeen’s sold from restaurants||12%|
Note: The table above indicates GST rates applicable to supplies made by restaurants in different circumstances. However, the actual GST incidence will be lesser due to incresed availability of input tax credit.
This limit is Rs. 50 lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh.
For more information about GST rates in your hand, Download GST app on your smartphone and discuss with CA experts for GST queries and get instant solution.
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