Can a new restaurant unit charge 5%GST ?

Hey Renjith! About your GST question for the new restaurant unit at a 5-star hotel:

Key points under GST for Restaurants:

• GST on Food Services:

  • Food served in restaurants with room tariff above ₹7,500 per night attracts 18% GST (9% CGST + 9% SGST).

  • Food served in restaurants with room tariff below ₹7,500 per night attracts 5% GST (2.5% CGST + 2.5% SGST) without ITC.

• Takeaway / Outdoor Catering:

  • Food supplied through takeaway or outdoor catering attracts 5% GST without ITC, irrespective of hotel room tariff.

In your case:

• The existing hotel has room tariff above ₹7,500, so food served inside the hotel restaurant is charged 18% GST.

• The new outdoor food takeaway unit (like a food kiosk or takeaway counter) is a separate supply mode.

• For takeaway or outdoor supply, GST rate is 5% without ITC, even if the hotel has rooms priced above ₹7,500.

Conclusion:

Yes, the new outdoor food takeaway unit can charge 5% GST on the food sold there, even though the main hotel restaurant is charging 18%.