Government of India introduced GST on 1 July 2017 for benefit of common people. But there are many people who are still not clear about GST tax rates on commodities. Or for that matter GST rate on daily use things. GST on food processing is also one of them. Thus to help you here we listed out details of GST on processing food.
How do authorities charge GST on products?
This is one question that people are not aware of as to what will be GST prices on products. So it is best idea that you read this article to have idea of GST prices on takeaways and food from non AC area of restaurant or hotel.
Firstly CBEC or Central Board of Excise and Customs clarified that tax will be 18 percent only. On other hand many people say that Goods and Services Tax is biggest economic reforms. Moreover it applies to things like earlier there was tax on different things.
Tax on takeaways in restaurants or hotels
Central Board of Excise and Customs clearly stated some things. CBEC said that there will be tax or GST on takeaways also. Apart from this authorities levy tax on food that you get in non AC area of either hotel or restaurant. Here another aspect is that tax will be same for both takeaways and eating at the outlet.
As a result you do not worry if it is takeaway or you are dining at the hotel / restaurant. The only thing that you remember is that you pay same tax. Moreover tax never changes if you eat on ground floor or first, second, third floor of non AC area of restaurant / hotel.
Example on GST rate on ac and non ac restaurant / hotel
Let us say that you bought food from first floor which does not have AC. And this hotel or restaurant has third floor that has AC. So you pay 18 % as GST tax rate. This is because hotel or building has AC therefore Goods and Services Tax rate can never change.
GST when you eat at non AC restaurant or hotel
On other hand if you eat in non AC restaurant or hotel then you pay 12 % as GST tax (CGST is 6 % and SGST is 6 %). This GST rate is same for local delivery restaurants.
Case 2: when restaurants serve liquor
In case restaurants serve liquor then you do not come under composition scheme. Whereas if you eat in AC restaurant then you pay 18 % as GST even if restaurant does not serve alcohol. You pay 18 % for eating in AC restaurant and 12 % for non AC restaurant. Finally for local delivery restaurant it is 12 % GST.
Check what is GST?