18% GST on food takeaway from non-AC area at AC restaurant as well
The CBEC said tax will have to be charged at 18 percent irrespective of from where the supply is made, first floor or second floor. "If any part of the establishment has a facility of air conditioning, then the rate will be 18 percent for all supplies from the restaurant," it said.
A uniform GST rate of 18 percent will be charged on takeaways as well as food served from a non-air-conditioned (AC) area of a hotel or restaurant if any room part has a facility of air conditioning, the government has said.
The new Goods and Services Tax (GST) regime, which was rolled out from July 1, provides for levy of 12 percent on food bill in non-AC restaurants. The tax rate for AC restaurants and those with a liquor licence will be 18 percent while 5-star hotels will charge 28 percent GST.
The Central Board of Excise and Customs (CBEC) has clarified through an FAQ on the GST rates that will be levied by restaurant-cum-bars where the first-floor area is air- conditioned and used for serving food and liquor while the ground floor only serves food and non-AC.
"If any part of the establishment has a facility of air conditioning, then the rate will be 18 percent for all supplies from the restaurant," it said.
With regard to tax rates that would be charged for take- away food from such restaurants, the CBEC said, "Tax has to be charged at 18 percent on supplies of food made from their takeaway counter."Besides, such restaurants are also not eligible for the composition scheme as they are engaged in supplying liquor.