GST on Restaurants

Image result for GST on RestaurantsRestaurants with Rs 50 lakh or below turnover will go under the 5 per cent composition. Moreover, it will also make it easy for the restaurants to take credit of input goods and services consumed while providing restaurant services. It is expected that GST will marginally lower the overall tax rate however, till the time the final GST rates are announced for this particular sector, no conclusion can be derived out of it.

  • Restaurants with a turnover of less than Rs 50 lakh will be levied a tax rate of 5 per cent.
  • Non-ac restaurants will have a 12% tax rate.
  • AC restaurants will have to shell out 18% tax.
  • Also five-star restaurants will have to submit a luxury tax of 28 percent.
  • Hotels, lodges with tariffs less than Rs 1,000 will be taxed at 5%.
  • Hotel lodges with tariffs between Rs 1,000- Rs 2,500 will be charged 12% tax
  • Hotel lodges with tariffs between Rs 2,500- Rs 7499 will be charged 18% tax.

New GST regime, the taxes applicable on air-conditioned and non air-conditioned spaces will be 18% and 12% respectively, for AC restaurants would be levied even if a customer dined outdoors. “Our restaurants are AC establishments, so whether someone sits out or in, GST for AC, which is 18%, will apply.”

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