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18% GST on takeaway food from non-AC area of AC restaurant

Tax rate for AC restaurants and those with liquor licence will be 18% and 28% for 5-star hotels

Press Trust of India  |  New Delhi 

GST: Illustration: Ajay Mohanty
GST: Illustration: Ajay Mohanty

A uniform goods and services tax (GST) rate of 18 per cent will be charged on takeaways as well as food served from a non-AC area of a hotel or restaurant if any of its part has a facility of air conditioning, the government said.
The new GST regime, which was rolled out from July 1, provides for levy of 12 per cent on food bill in non-AC The tax rate for AC and those with licence will be 18 per cent while 5-star hotels will charge 28 per cent 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. 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.