18% GST Charge by the Government on Non-AC Area at AC Restaurants

GST for AC Restaurant

The Indian Government now has a consistent charge on takeaways in AC restaurants in Non-AC areas. 18% GST for the hotels those serve as AC but recognized as non-AC.

GST Impact on Restaurants

The new GST scheme came into existence from July 1, applied 12% GST for non-AC restaurants. However, licensed restaurants and bars will have a charge of 18% whereas 5-star hotels charging 28%.

The CBEC clarified in this regard where the first floor is AC and ground floor non-AC will have charge of 18% irrespective of the supply made. “If any part of the establishment has a facility of air conditioning, then the rate will be 18 percent for all supplies from the restaurant,” it said.

The takeaway food taxes at such food courts. Adding to this point, CBEC quoted, “Tax has to be charged at 18 percent on supplies of food made from their takeaway counter”. The Indian Government becoming strict in one part of GST making a profit for the country.