18% GST Now On Food take away: Restaurant Owners & Diners


Post GST the government has issued orders for restaurant industry that a GST rate of 18% will be charged on takeaways from AC or any non-AC hotel or restaurant with any of its parts having a facility of air conditioning.

The CBEC declared that a charge of 18% is fixed irrespective of where the supply is made from a restaurant.

For example, a restaurant cum bar where the bar area is air conditioned and the food serving or dining area is Non AC will be charged with a GST of 18% on takeaways of any item supplied either from bar area (AC )or food serving zone( Non AC area).

But if you are having your food at a Non AC restaurant, you will end up paying only 12% GST and the same GST rates is applicable for local delivery restaurants without AC.

The GST Council has already set a standard rate of 12% on food bill in non-AC restaurants whereas the GST rate stands at 18% for AC restaurants with a liquor license. The 5-star hotels will be charging 28% GST as they come under the luxury category.

Restaurants which are registered under the GST composition scheme will have to issue a bill of supply but as these restaurants are with a liquor license, which is not covered in GST, they are not even eligible for the composition scheme.

There are several restaurants in Delhi and Noida which have both AC and non-AC halls to cater to different sections of custom. Those sauntering into the AC rooms know full well that they are going to be fleeced both by the restaurant and by the tax authorities. Restaurants have a premium rate for the same dish of the same quality served in the cooler precincts and the tax authorities jump into the fray by demanding their pound of flesh with a heightened GST. Nothing wrong in this because the customer had after all the choice of avoiding the AC room and thus pay a softer tax of 12 percent.

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