Table of Contents
Is GST required for small restaurant?
Restaurants, like most businesses with a turnover of more than Rs. 20 lakh, will require GST Registration in most states. Restaurants in special category states will require GST registration if the annual aggregate turnover crosses Rs. 10 lakhs.
Is GST applicable on hotel food?
*This covers individuals supplying catering or other services in hotels (having room tariff of Rs 7,500 or more) and not any hotel accommodation services….GST rates on restaurant bills (with effect from 01/2019)
| S No | Type of Restaurants | GST Rate |
|---|---|---|
| 1 | Railways/IRCTC | 5\% without ITC |
| 2 | Standalone restaurants | 5\% without ITC |
What is GST rate for restaurants?
18\% GST
18\% GST on restaurant services including room service and takeaway provided by restaurants located within a hotel featuring room tariff over Rs. 7,500. 18\% GST on food services including delivery of food provided by a restaurant/food joint located within premises of a club, guest house, etc.
Is GST compulsory for hotels?
Services provided by the hotel is a taxable service in GST. The place of supply will always be the state/union territory where the hotel is located even if the guest is a registered person and has GSTIN of another state. Therefore, a hotel has to charge SGST and CGST always.
Can we claim GST input on hotel bills?
Yes you can claim ITC on hotel bill ( not food expenses only stay bill ) provided you are having your GST registration in the same state .
Does hotel accommodation have GST?
If you sell taxable accommodation and your turnover is over the GST threshold you need to charge GST. Examples of taxable accommodation sales include: hotels. motels.
Can we claim GST on restaurant bills?
No ITC on restaurants 46/2017-Central Tax (Rate), dated 14th November 2017, standalone restaurants will charge only 5\% GST but cannot enjoy any ITC on the inputs. However, restaurants as part of hotels with room tariffs exceeding Rs. 7,500 still continue to pay 18\% GST and enjoy ITC.
Can hotel business opt for composition scheme?
It is a simple and relatively hassle-free way for GST Compliance for small taxpayers. Anyone can voluntarily opt for this scheme if they come under the set guidelines. Composition Scheme under GST is also available for Restaurant and Hotel Services that come with certain conditions.
What is the GST rate for restaurants in hotel premises?
This means that customers would have to pay higher tax rates for eating at the restaurants of the same hotel premises where he has taken a stay. As per rules, GST rate for restaurants in hotel premises having room tariff of less than ₹7,500 a day will attract GST of 5 per cent without input tax credit.
Can restaurant businesses take input credit under GST?
Restaurant businesses are allowed to take input credit without any restriction subject to certain guidelines. Here are few important conditions: Stock invoice should not be more than 12 month old. Dealer should be registered. Stock is intended to be used in a taxable supply. Credit is allowable under GST law.
What is the GST rate for non AC Restaurants in India?
The GST for Non AC restaurants is quite similar to that of AC restaurants but the GST on food services is 5\% due to the change in premise condition. Other than this, the GST on catering services is 18\%, applying to all outdoor catering services that are provided individually or from a restaurant.
Is the restaurant business eligible to opt composition scheme under GST law?
The restaurant business is eligible to opt composition scheme under the GST law. However, the restaurant is required to follow the prescribed composition GST rules.