GST Rate On Sweet Shop

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This discussion clarifies the GST rate applicable to sweet shops. If a sweet shop operates without a dining facility, it's treated as a supplier of goods, with individual GST rates applying to items like sweets, samosas, tea, and coffee. Input Tax Credit (ITC) can be claimed. However, if the sweet shop offers dining services, it's considered an extension of a restaurant. In this case, a 5% GST rate applies to all items, including takeaways, provided that ITC is not claimed. For dining services specifically, the 5% rate applies without ITC, while takeaway items are subject to their respective goods' GST rates with ITC claimable.

Anil Sharma

Anil Sharma (Querist)
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02 October 2021 Want to know what is GST Rate on Sweep Shop made of milk, wheat, besan etc which is also selling Kachori, Samosa, Tea, Coffee, Chocolate etc

If resturant is in Regular Scheme Of GST

1. What is GST Rate on sweet shop including Kachori, Samosa, Tea, Coffee, Chocolate etc

2. Can we charge single rate on all sweets or we have to charge seperately

3. Can we claim ITC in sweets shops

4. What is HSN code for the same

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 October 2021 (i) The supply shall be treated as supply of service and sweet shop shall be treated as extension of restaurant;

(ii) The rate of GST on aforesaid activity will be 5% as on date, on the condition that credit of input tax charged on goods and services used in supplying the said service has not been taken;

(iii) All the items including takeaway items from the said premises shall attract GST of 5% as on date subject to the condition of non availment of credit of input tax charged on goods and services used in supplying the Said service.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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03 October 2021 The sweet shop is not to be considered a restaurant unless it is providing a service of dining in its premises.
Therefore goods sold by sweet shop will be considered as goods and respective rates shall be applicable. ITC can also be claimed.
If the sweet shop is having a facility of dining in its premises it is to be seen which goods are sold as part of restaurant service and which goods are sold as takeaway. For restaurant service rate is 5% without ITC and for takeaway respective rates of goodsa re applicable with ITC.
For more details you can mail me.

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