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The GST Confusion and Restaurants’ Billing

The GST Confusion and Restaurants’ Billing

Many customers complained about restaurants charging GST along with VAT and Service tax.                   In the hearsay of several consumers calling for their confusion on social media regarding GST rates for restaurants and the relation of the same to VAT and service tax, the government has come out with a clarification about GST rules for restaurants.

The food ordered at restaurants captivates two kind of tax structures depending on whether if it is an AC restaurant or a non-AC restaurant, and whether the restaurant has the license to serve alcohol or not.

These are 12% and 18% GST rates which include both CGST (Central GST) and SGST (State GST).

For the GST tax rate of 12%, 6% is CGST and the other 6% is SGST.

Similarly, for the GST tax rate of 18%, 9% is CGST and the other 9% is SGST.

The 12% GST rate is for :

  • non-AC restaurants,
  • roadside eateries that don’t serve alcohol,
  • local delivery restaurants.

The 18% GST rate is for :

  • the restaurants with full air-conditioning (both with or without alcohol),
  • non-AC eateries that serve alcohol.

The Central Board of Excise and Custom has also clarified that the actual GST incidence will be lesser.

The tax department has also launched the GST Rate Finder App. This App is available on Google Play platform for Android handsets, the app enables users to find the applicable GST rates on goods and services.

In order to download the GST RATES FINDER App, you can follow the steps mentioned below:

  1. Open Google Play Store on your smartphone.
  2. Go to the search tab and search for “GST Rate Finder”.
  3. Select the app and press “Install” to download the app on your phone.

And then you are good to go in a few minutes.

Here is how you can use the GST Rates Finder App –

  1. Open the GST Rates Finder app on your phone.
  2. To find out the details about a product, write its name in the search box and click enter.
  3. This will provide you with the all the details related to the product.
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About Rahul Jindal

Student at Motilal Nehru College, pursuing Bachelor of Commerce (Hons.) I am enticed with the world of finance, taxation, economics and business management. Core areas of interest are Finance and Economics. Being a commerce student, I look for a better future in Financial Markets and Entrepreneurship opportunities.
I love teaching people.
Apart from all these I am a foodie, and love to play basketball.


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