GST came into effect on July 1st. And since then a lot of restaurants have started adding the tax to the bills. The tax subsumes 17 direct taxes, 22 cesses at different rates across different states. Earlier, the bill would include – Service Charge, Service Tax, Value Added Tax! And now all of this comes under GST!
So, without further ado, here’s everything you need to know about GST and check how the restaurant you eat at charges you!
The Government of India recently released a set of guidelines for you to help check the rate at which your bill is generated.
- Non-AC Eateries (not serving liquor) will charge tax at 12% – CGST (6%) + SGST (6%), local delivery restaurants will also fall under this.
- And finally, pre-packed and pre-cooked meals prepared by restaurants will be sold at 12% tax
- AC restaurants (serving and not serving liqour) will charge tax at 18%
- Non AC restaurants serving liqour will charge tax at 18%
The above information indicating GST rates is applicable to supplies of restaurants under various circumstances. However, the actual GST incidence will be far less due to increased availability of input tax credit.
And we urge you to keep in mind the fact that no restaurant can charge GST at 28%. In fact, the Tax Department sent a circular to all the restaurants across Delhi mandating that all of them must cut rates of food items.
Here’s a little table to give perspective to this –
So, now that you know the breakup of the GST incidence, do give the entire story a read here.
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