NEW DELHI: A uniform goods and services tax (GST) rate of 18 per cent will be charged on air-conditioned (AC) restaurants for all services, including for takeaways as well as food served from a non-AC area, the government has said.
Such services attract only 12 per cent in non-AC restaurants (six per cent central GST and six per cent state GST), Central Board of Excise and Customs (CBEC) clarified through a tweet. The same rates also apply for local delivery restaurants.
The tax department 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.
The CBEC said tax will have to be charged at 18 per cent 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 per cent for all supplies from the restaurant,” it said while answering the FAQ.
On indirect tax rates that would be charged for take-away food from such restaurants, the CBEC said, “Tax has to be charged at 18 per cent on supplies of food made from their takeaway counter.”
According to CBEC, such restaurants are not eligible for the composition scheme as they are engaged in supplying liquor.