HSN or SAC code for restaurants

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

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.

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%