Quick Summary
The Bombay High Court has granted an interim stay on the higher 18% GST levied on restaurants located inside premium hotels. The stay comes in response to a petition challenging the rate disparity between such restaurants and standalone eateries, which are taxed at a rate of only 5%. The matter will next be heard on November 19, according to a report by The Economic Times. The court has also issued notices to the Union Government, the Maharashtra Government, the GST Counciland other relevant au
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FAQ :
The Bombay High Court has granted an interim stay, temporarily halting the 18% GST on restaurants located inside premium hotels.
The challenge argues that the 18% GST rate for hotel restaurants is arbitrary and commercially unjustified, especially when standalone restaurants are taxed at only 5%.
Standalone restaurants are taxed at a rate of 5% GST without Input Tax Credit (ITC).
The next hearing for the case is scheduled for November 19th.
From April 1, 2025, a hotel is considered 'specified premises' if even one room is priced over Rs 7,500 per night. Hotels can also voluntarily opt into this classification.
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