With the GST roll-out effective July 1, the tax applicable on restaurant bills has been made quite clear. Yet customers seem to argue with the restaurant staff on rates applicable, especially for take-away and home delivery orders. I have provided below the specific clauses applicable and a copy of the advertisement issued by the department specific to restaurants for your reference. You can take a print-out of this and display/show it to customers who have queries on this.
Ad posted by the department in the Times of India on Aug 13, 2017
Ad posted by the department earlier in June 2017
There are 4 kinds of restaurants:
1) Any business with less than 20 lakhs annual revenues need not even register under GST nor do they need to pay anything under GST. So most small roadside eateries are fully exempt from GST.
2) Small restaurants with annual turnover less than 75 lakhs. Note that if a small restaurant has 2 branches under the same legal name with the same GST number, the total revenues of both the restaurants are taken into account to determine the 75 lakhs limit.
Such restaurants with annual revenues less than 75 lakhs can register under GST under the composition scheme and the applicable rate of GST is 5%. Like in the earlier composition scheme under VAT, the restaurant cannot charge the 5% to customers. i.e. If an item is priced at Rs.200, the customer can be charged only Rs.200. 5% of Rs.200 is then payable by the restaurant as GST.
Note: For restaurants in the following states, the annual turnover limit will only be Rs. 50 lakhs - Assam, Arunachal Prdesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim & Himachal Pradesh.
3) Restaurants without air-conditioning - the rules state that the restaurant should not have AC in any part of the premises. So restaurants with a non-AC section and AC section will still have to charge 18% GST. In practice some restaurants are charging 12% GST for the non-AC section and 18% GST for the AC section, if the AC section in a separate floor with a separate entrance. This seems to be incorrect as per the definition as the GST number is the same for the AC and the non-AC restaurant in the same premises.
4) Restaurants with air-conditioning (in any part of the restaurant) need to charge 18% on all bills for food prepared in the kitchen. The 18% rate is applicable for dine-in, take-away, delivery and even party orders from the restaurant. If the AC restaurant also sells pre-packaged food, such as Namkeens (e.g. Packed Chips in a Halidrams or Adyar Ananda Bhavan), the GST applicable on these items will be 12%
4) When customer order from third party websites such as Swiggy, Foodpanda, Zomato, UberEats etc., the respective restaurant's GST rates need to be charged. If any service charges are levied by these sites, GST of 18% is applicable on the service charges. E.g. If a customer places an order on Swiggy from a non AC restaurant for Rs. 200 and a delivery charge of Rs.40 is levied by Swiggy, then the GST chargeable should be: 12% GST on Rs.200 + 18% of GST on Rs.40 = Rs.24 + Rs.7.20 = Rs.31.20. Total bill with GST = Rs.200 +Rs.31.2 = Rs.231.20.
Google search throws up several results - have provided a few of those links for easy reference.
NDTV: http://www.ndtv.com/india-news/gst-how-composition-scheme-for-restaurants-small-traders-manufacturers-will-work-1717363
Business Standard: http://www.business-standard.com/article/economy-policy/gst-are-hotels-eateries-overcharging-you-how-to-get-the-math-right-117071200236_1.html
Cleartax: https://cleartax.in/s/impact-gst-food-services-restaurant-business
BGR: http://www.bgr.in/news/food-ordering-apps-uncertain-of-gst-slab-charge-customers-variable-rates-decline-orders/
Ad posted by the department in the Times of India on Aug 13, 2017
Ad posted by the department earlier in June 2017
There are 4 kinds of restaurants:
1) Any business with less than 20 lakhs annual revenues need not even register under GST nor do they need to pay anything under GST. So most small roadside eateries are fully exempt from GST.
2) Small restaurants with annual turnover less than 75 lakhs. Note that if a small restaurant has 2 branches under the same legal name with the same GST number, the total revenues of both the restaurants are taken into account to determine the 75 lakhs limit.
Such restaurants with annual revenues less than 75 lakhs can register under GST under the composition scheme and the applicable rate of GST is 5%. Like in the earlier composition scheme under VAT, the restaurant cannot charge the 5% to customers. i.e. If an item is priced at Rs.200, the customer can be charged only Rs.200. 5% of Rs.200 is then payable by the restaurant as GST.
Note: For restaurants in the following states, the annual turnover limit will only be Rs. 50 lakhs - Assam, Arunachal Prdesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim & Himachal Pradesh.
3) Restaurants without air-conditioning - the rules state that the restaurant should not have AC in any part of the premises. So restaurants with a non-AC section and AC section will still have to charge 18% GST. In practice some restaurants are charging 12% GST for the non-AC section and 18% GST for the AC section, if the AC section in a separate floor with a separate entrance. This seems to be incorrect as per the definition as the GST number is the same for the AC and the non-AC restaurant in the same premises.
4) Restaurants with air-conditioning (in any part of the restaurant) need to charge 18% on all bills for food prepared in the kitchen. The 18% rate is applicable for dine-in, take-away, delivery and even party orders from the restaurant. If the AC restaurant also sells pre-packaged food, such as Namkeens (e.g. Packed Chips in a Halidrams or Adyar Ananda Bhavan), the GST applicable on these items will be 12%
4) When customer order from third party websites such as Swiggy, Foodpanda, Zomato, UberEats etc., the respective restaurant's GST rates need to be charged. If any service charges are levied by these sites, GST of 18% is applicable on the service charges. E.g. If a customer places an order on Swiggy from a non AC restaurant for Rs. 200 and a delivery charge of Rs.40 is levied by Swiggy, then the GST chargeable should be: 12% GST on Rs.200 + 18% of GST on Rs.40 = Rs.24 + Rs.7.20 = Rs.31.20. Total bill with GST = Rs.200 +Rs.31.2 = Rs.231.20.
Google search throws up several results - have provided a few of those links for easy reference.
NDTV: http://www.ndtv.com/india-news/gst-how-composition-scheme-for-restaurants-small-traders-manufacturers-will-work-1717363
Business Standard: http://www.business-standard.com/article/economy-policy/gst-are-hotels-eateries-overcharging-you-how-to-get-the-math-right-117071200236_1.html
Cleartax: https://cleartax.in/s/impact-gst-food-services-restaurant-business
BGR: http://www.bgr.in/news/food-ordering-apps-uncertain-of-gst-slab-charge-customers-variable-rates-decline-orders/
All MNC company need modular kitchen job in chennai for new look. Its help look and feel gud.
ReplyDeleteNice Blog... Thank you for sharing this information
ReplyDeletePrestige Jindal
Prestige Kew Gardens
Mantri Serenity
Tata New Haven
Prestige Lakeside Habitat
Shapoorji Pallonji Parkwest Phase 2
Sobha Palladian
Nice article
ReplyDeleteOnline Grocery Shopping Store
I am very happy to read this. Appreciate your sharing
ReplyDeletelennyfacetext.com
ReplyDeletebar and restaurant in gurgaon
restaurant in gurgaon
bar in gurgaon
good information
ReplyDeletepackers and movers hyderabad ---
packers and movers bangalore
very nice information given in this blog.. Whenever we go to roam we search a hotel that is free of pollution and is full of greenery here is such type that is a best Boutique Hotel in Dehradun India.
ReplyDeleteHay there nice blog
ReplyDeletefor best online services
please visit here
wedges flipkart
Great Stuff !!
ReplyDeleteArticle need few amendment in the light of Notification no 48/2017 integrated tax(rate). may refer https://goo.gl/N3q1UP
Keep up the good work.
Cheers
interesting blog. Visit Rooms for rent in Mumbai
ReplyDeleteNice blog and thanks for sharing the post. Check out some latest projects.
ReplyDeleteProvident Kenworth
SMR Vinay Iconia
Prestige Ivy League
Western Exotica
Prestige Ivy League Hyderabad
NCC Urban Gardenia
Quiescent Heights
Lodha Meridian
Lodha Bellezza
Quiescent Heights Hyderabad
We give all sort of Hotel Supplies . We supply a thorough cluster of Hospitality supplies that are fabricated by a specialist group of expert team.
ReplyDeleteGreat Content.
ReplyDelete---
LLP Registration in Chennai
Udyog Aadhaar Registration in Chennai
Uttam nagar Best Catering Service.
ReplyDeleteKashmir Caterers
We take pride in offering the most noteworthy type Buffet ware suppliers andCatering supplies. We offer diverse scope of Induction Chafers and Rolltop Chafers.
ReplyDeleteThanks for the information you have provided in your article to find our favorite restaurant for the best Andhra food. Among these many restaurants provide food home delivery services. To order Andhra food online in Bangalore visit Order Food Online in Kammanahalli | Andhra Style Restaurant in Bangalore
ReplyDeleteVery nice Article
ReplyDeletehttps://telloquent.com/
All Your Problem Solution By lady Astrologer ushadevi ji. He Is The Best Vashikaran lady Astrologer Call For Quick Solution +91 9982911232
ReplyDeleteOnline Love Problem solution
Love and intercast marriage Problem solution
your Lost Love back problem solution
family problem solution
husband-wife problem solution
Nice post. Keep sharing. Restaurants near bangalore International Airport
ReplyDeleteAttide Hotels near Bangalore Airport serves the delicious food.
DeleteDaily Deals and Offers Delhi,
ReplyDeleteGurgaon, Best, Deals on Retail,
Best Offers on Spa, Salon,
Best Deals and Offers on Travel,
Best Offers on Events,
Best, Deals on Fitness,
Best Offers,
resort booking,
Deals on Real Estate,
Best Offers on Hospitality,
houses for sale,
homes for sale,
property for sale,
restaurants near me,
places to eat near me,
sale,puchase,rent,
restaurants near my location,
new restaurants near me,
places to eat around me,
family restaurants near me,
restaurants close to me,
places near me,
top rated restaurants near me,
restaurants in my area,
Thanks for sharing this wonderful blog with us. Nice post with great information and it is indeed informative and useful.
ReplyDeletehttp://brandsandbranches.com/junkyard-cafe-franchise.html
Thanks for sharing this wonderful blog with us. Nice post with great information and it is indeed informative and useful.
ReplyDeletehttp://brandsandbranches.com/the-vault-franchise.html
Nice blog and thanks for sharing the information!!
ReplyDeleteProvident Kenworth
Salarpuria Sattva Magnus
Assetz Sun and Sanctum
Nice information, I will try it.
ReplyDeleteSome restaurants cater Best Indian food in Bangkok mostly to Indian as well as other tourists from different countries, and the food is of top quality.
Bawarchi serve authentic and delicious Indian food, where the Indians as well as other tourists love to eat.
Thank you!
ReplyDeleteFurnished office space in Koramangala Office space in Koramangala
Thanks...
ReplyDeleteoffice for rent in Bangalore
Thank you!
ReplyDeleteOffice space for Rent in HSR Layout
Nice blog and thanks for sharing the post.
ReplyDeleteSMR Vinay Iconia
Prestige Ivy League
SMR Vinay Harmony County
Hallmark Vicinia
Unique Residency
Jubilee Ballpark
Incor One City
SR Constructions
Nice restaurant
ReplyDeleteThank you for sharing this information.
eco-friendly plates, eco friendly crockery, eco-friendly disposable plates
Nice post. By reading your blog, i get inspired and this provides some useful information. Thank you for posting this exclusive post for our vision.
ReplyDeleteinterior designers in chennai
Nice blog and thanks for sharing the post.
ReplyDeletePrestige Ivy League
Mayfair Apartments
SR Constructions
Hallmark Vicinia
Accurate Wind Chimes
Hi,this is really very nice blog.I have learned a lot of good and informative stuff from your blog.Thank you so much for sharing this wonderful post. Keep posting such valuable contents.
ReplyDeleteWe are also into the Digital Marketing space.
Please visit our website by clicking the links given below.
Best Digital Marketing Training Course in Kolkata
Best Digital Marketing Training Centre in Kolkata
Best Digital Marketing Training Center in Kolkata
Best Digital Marketing Training Institute in Kolkata
Best SEO/Search Engine Optimization Training Centre in Kolkata
Best SEO/Search Engine Optimization Training Center in Kolkata
Best SEO/Search Engine Optimization Training Course in Kolkata
Best SEO/Search Engine Optimization Training Institute in Kolkata
Best Digital Marketing SEO Internship in Kolkata
Best Digital Marketing SEO Agency in Kolkata
Best Digital Marketing SEO Jobs in Kolkata
Digital Marketing Course Fees in Kolkata
Digital Marketing Course Online in Kolkata
Digital Marketing Expert Abuzar Shah Qureshi in Kolkata
Digital Marketing Expert in Kolkata
Best Digital Marketing Company in Kolkata
Best SEO Company in Kolkata
Best SEO Services in Kolkata
Digital Marketing Jobs for Fresher in Kolkata
Best SEO Jobs for Fresher in Kolkata
Thank you for sharing and keep posting.
ReplyDeleterestaurants in madhapur and hitech city
Very interesting topic to read but would like to add one more thing to make this plan more efficient by adding integrating Restaurant Delivery Software. This, in turn, will drive more revenue, enhance order accuracy, and better customer experience.
ReplyDeleteThanks for sharing the information with us!!
ReplyDeleteProvident Kenworth
Ramky One Galaxia
Sumadhura Horizon
NCC Urban Gardenia
MPR Urban City
Sri Aditya Athena
Nice blog, and thanks for sharing the post.
ReplyDeletePrestige Ivy League
Mayfair Apartments
Prestige High Fields
Agrim Sky Tower
Aditya Athena
MPR Urban City
Manbhum Around the Grove
Green Grace
Incor PBEL City
Agrim Sky Tower
I am definitely enjoying your website. You definitely have some great insight and great stories.
ReplyDeleteinterior decorators in chennai
Modular kitchen in chennai
if you are stuck with your management assignment then in this case you can opt for our Management Assignment help. we provide the best assignment help online.
ReplyDeleteWe also provide Human Resource assignment help for students across the globe. for more information contact us +16692714848
ReplyDeleteThank you so much for sharing this excellent information. Your article is amazing. Good to discover your post.
food delivery software in Texas
online food software in usa
online food software in Frisco
Dining Ordering System
The last time I had to file my ITR, I had come across Quicko through the Quora platform. Have to admit they were very helpful and really supportive as this was the first time I had to file my ITR. Quicko
ReplyDeleteThe last time I had to file my ITR, I had come across Quicko through the Quora platform. Have to admit they were very helpful and really supportive as this was the first time I had to file my ITR. Quicko
ReplyDeleteGreat post! I am actually getting ready to across this information, It’s very helpful for this blog.Also great with all of the valuable information you have Keep up the good work you are doing well.
ReplyDeleteBest Interior Designers
home interiors in chennai
Commercial interior designers in chennai
I really like your blog. You make it interesting to read and entertaining at the same time. I cant wait to read more from you.
ReplyDeleteOffice interior designers in chennai
living room interior designers in chennai
False ceiling interiors designers in chennai
This is such a good post. One of the best posts that I\'ve read in my whole life. I am so happy that you chose this day to give me this. Please, continue to give me such valuable posts. Cheers!
ReplyDeletePooja room interior desingers in chennai
Hotel Interior desingers in chennai
Hospital interior designers in chennai
If you have any issues with the gst returns you need to contact Quicko , they are a group of tax experts who will help you out with every issue you have just they way they helped me out
ReplyDeleteA universal message I suppose, not giving up is the formula for success I think. Some things take longer than others to accomplish, so people must understand that they should have their eyes on the goal, and that should keep them motivated to see it out til the end.
ReplyDeleteinterior designers in chennai
This comment has been removed by the author.
ReplyDeletethe information you have updated is very good and useful, please update further.
ReplyDeleteif you require any info regarding TAX & GSTR please visit
Food Safety License in Bangalore
Fssai Registration in Bangalore