There is lot of confusion on rate of GST Applicable to Restaurants under Composition Scheme, Restaurant with no air-conditioning in any part thereof and not serving liquor, Restaurant with partial or full air-conditioning or serving liquor, Rate of tax on food parcel cooked as per order, Rate of tax on parcel of pre- packed and pre- cooked namkeens sold from restaurants and Is there any restaurant where the rate of tax is 28%. To clear this confusion following clarification is issued :-
| Different circumstances of supplies by restaurants | Rate of tax (CGST + SGST) |
| Restaurant under Composition Scheme (upto aggregate turnover of Rs. 75 lakh*) | 5% |
| Restaurant with no air-conditioning in any part thereof and not serving liquor | 12% |
| Restaurant with partial or full air-conditioning or serving liquor | 18% |
| Is there any restaurant where the rate of tax is 28% | No |
| Rate of tax on food parcel cooked as per order | As applicable to service of food in that restaurant |
| Rate of tax on parcel of pre-packed and pre-cooked namkeens sold from restaurants | 12% |
Note: The table above indicates GST rates applicable to supplies made by restaurants in different circumstances. However, the actual GST incidence wilt be lesser due to increased availability of input tax credit.
* This limit is Rs. 50 lakh for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh.
Restaurant in a Mall where there is centralised AC and the expected turnover of a restaurant is Rs 40 Lakhs – Rate of tax (CGST + SGST) @ 18%
What about a restaurant in a Mall where there is centralised AC and the expected turnover of a restaurant is Rs 40 Lakhs.