The Central Board of Excise and Customs has clarified that restaurants with air conditioners anywhere at the facility will charge a Goods and Services Tax rate of 18% on food bills, PTI reported on Sunday.
Completely non-AC outlets will charge a GST of 12%, those with an AC facility and those with liquor licenses will charge 18%, and five-star hotels will charge 28%.
Restaurants that have separate AC and non-AC areas will charge a uniform GST rate of 18%, regardless of where the food is served and even on takeaway orders. The CBEC made this distinction for restaurant-cum-bars that serve food and alcohol at air-conditioned their first floor and only food at the non-AC ground floor.
“If any part of the establishment has a facility of air conditioning, then the rate will be 18% for all supplies from the restaurant,” the board said.
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!