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In this article we will talk about how GST affected the bills of restaurants, hotels and other places where we usually go out for eat something. According to the National Restaurant Association of Indias 2019 India Food Service Report, the size of the Indian food service industry was 1,48,353 cro
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FAQ :
Before GST, restaurant bills included VAT (tax on food portion) and Service Tax (tax on services provided). Service Charge was also present but was not a tax, rather income for the hotels.
Standalone restaurants, including outdoor catering and food delivery services, have a GST rate of 5%.
For restaurants within hotels, the GST rate is 5% if the room tariff is less than Rs 7,500. If the room tariff is Rs 7,500 or more, the GST rate is 18%.
Fine dining restaurants are subject to a GST rate of 12% if air-conditioned and 18% if not air-conditioned.
Cloud kitchens are subject to a GST rate of 18%.
No, Service Charge is not a tax. It is income collected by the hotels and restaurants, not levied by the government.
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