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GST rate on restaurants

JANAK TANNA (STUDENT) (90 Points)

19 September 2018

Can restaurant charge GST at 18% or it's compulsory for them to charge GST at 5% only
please explain with legal provision

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4 Replies

Abhimanyu Krishan Sood (20 Points)
Replied 20 September 2018

The rate of gst on restaurants was cut down to 5% from 18% by the gst council, so it is compulsory fir them to charge 5%gst. The case where a restaurant can charge 18% gst is -
1) Starred hotels with tarrifs above rs 7,500
2) Outdoor catering

Rest all have to charge 5%, without benefit of ITC.

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 20 September 2018

As per Notification 46/2017 ,Its mandatory for resturant other then hotel where in the room tariff is more then 7500/- is 5% without ITC

JANAK TANNA (STUDENT) (90 Points)
Replied 20 September 2018

then how can certain restaurant charge 18% for eg Domino's

Abhimanyu Krishan Sood (20 Points)
Replied 21 September 2018

The rate of gst charged by Dominos is absolutely wrong and it's not passing the benefit of gst rate cut to the customer. It has been reported to the gst anti profiteering authority and the same is under investigation.