Hookah Not ‘Article for Human Consumption’: AAR Denies 5% GST as Restaurant Service

In re Indian Wire Products Company (GST AAR West Bangal)

The Authority for Advance Ruling (AAR), West Bengal, considered whether serving non-tobacco and tobacco-based hookah in a restaurant along with food would qualify as a supply of service under Clause 6(b) of Schedule II to the CGST Act, 2017 and attract GST at 5% applicable to restaurant services.

The applicant operates a restaurant under the name “Pappu Chaiwala” and is registered as a provider of restaurant services. It proposed to serve hookah—both herbal (non-tobacco) and tobacco-based—within the restaurant

Please become a Premium member. If you are already a Premium member, login here to access the full content.