Check Restaurant Bill: GST Rates Clarified by Govt.

Next time you dine at a restaurant, do check your bill to see if the proper GST or goods or services tax rate has been levied. As we know that, there is lot of confusion on rate of GST Applicable to Restaurants. The tax department has come out with clarifications on rates of GST for restaurants.

The clarification comes in the wake of many people flooding the social media, seeking clarity over the new tax regime.

To clear this confusion following clarification is issued:-

A. Restaurant under Composition Scheme (upto aggregate turnover of Rs. 75 lakh*)  

Rate of GST: 5%

(*) This limit is Rs. 50 lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh.

B. Restaurant with no air-conditioning in any part thereof and not serving liquor 

 

Rate of GST: 12%

C. Restaurant with partial or full air-conditioning or serving liquor

Rate of GST 18%

Common Questions & Answers:

Question: Is there any restaurant where the rate of tax is 28%?

Answer: No

Question: what is the Rate of tax on food parcel cooked as per order?

Answer: As applicable to service of food in that restaurant.

Question: What is the Rate of tax on parcel of pre-packed and pre-cooked namkeens sold from restaurants?

Answer: 12%

The tax department has also launched the app GST Rate Finder. Available on Google Play platform for Android handsets, the app enables users to find the applicable GST rates on goods and services. The rates can also be accessed on the tax department's website.