HSN or SAC code for restaurants

I want to know about HSN or SAC code applicable for Restaurants and also applicable rate.
Replies (11)
Quick Summary
Restaurants use SAC codes under 9963 for food and beverage services. Common code 996331 covers restaurants, cafes, takeaway, room service, and delivery. GST rates generally discussed are 5 percent for most restaurants and 18 percent for specified hotel restaurants or catering.

Supply of Food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having licence to serve liquor...................... 12% with ITC

and 5% without ITC under composition scheme

996331 Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food.
996332 Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway services and door delivery of food.
996333 Services provided in Canteen and other similar establishments
996334 Catering Services in Exhibition halls, Events, Marriage Halls and other outdoor/indoor functions.
996335 Catering services in trains, flights etc.
996336 Preparation and/or supply services of food, edible preparations, alchoholic & non-alchocholic beverages to airlines and other transportation operators
996337 Other contract food services
996339 Other food, edible preparations, alchoholic & non-alchocholic beverages serving services n.e.c.
Which section or rule deals with levy of gst on restaurant

Hi Dhiraj, Can we avail itc on hsn 996337?

9963 is the SAC code for Restaurant business which comprises of two different rates of 5% & 18%.

18% rate is applicable on restaurants in hotels which charge tariff of Rs 7500 or more per room day. All the other restaurants shall charge 5% GST on their bill.

ITC shall be available to restaurants who are covered under the 18% rate but it is not available to other restaurants covered by 5% rate.

99633 Food, edible preparations, alchoholic & non-alchocholic beverages serving services 996331 Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food.

In general the levy of GST on Restaurant/food services is governed by the section - 7 "supply" & section - 9.

However the same shall be treated as composite supplies under sec - 8.

Applicable rate

Food services provided by restaurants including takeaway facility (both air-conditioned and non a/c) -5% with no ITC & 18% with ITC.

Outdoor catering services - 18%

Services Accounting Codes (SAC Codes) 996331 is used for the Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food. under Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service. This service comes under heading Accommodation, Food and beverage services.

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996331 : Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food.

GST Rate : 5% or 18%

 

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