Central Board of Excise and Customs (CBEC) stated that Goods and Services Tax (GST) will have to be levied at 18% irrespective of from where the supply is made, first floor or second floor. If any part of the establishment has a facility of air conditioning then the rate will be 18% for all supplies from the restaurant.
Simply, if the restaurant or hotel is a multi-storey building where takeaway counter area is non-AC but the other parts of the facility have AC then GST will be 18%.
“If any part of the establishment has a facility of air conditioning, then the rate will be 18% for all supplies from the restaurant,” it said.
“Tax has to be charged at 18% on supplies of food made from their takeaway counter,” the board further added.
When the GST was rolled out on July 1, it was announced that non-AC restaurants will be charged at 12% while the AC restaurants at 18%. GST levied on 5-star hotels stands at 28%.