GST update: Non-AC area at AC restaurants under 18% slab
According to the GST norms, 12% is charged on every food bill in non-AC restaurants. Similarly, 18% is charged in AC restaurants and at those with a liquor license and 28% is charged in 5-star hotels. However, there was confusion on what would be the GST slab on food ordered in an establishment that has both AC and non-AC areas. Now it's been clarified.
What was the confusion?
It was assumed that non-AC area of an AC restaurant will attract 12% tax, while the AC area will be levied 18%. Needless to say, this led to two tax slabs within a single establishment. Central Board of Excise and Customs (CBEC) has now clarified that food or takeaways ordered from an establishment, which has both AC and non-AC areas, will attract 18% GST.
Clarifying the matter
Restaurant-cum-bars, where the ground floor only serves food and is non-AC while the first floor has AC and serves food and liquor both, will also attract 18% on both the floors. In the case of takeaways, the same theory applies. Even if you place the order at the non-AC area of an AC hotel, you will have to give 18% GST.
No more clarity needed on solar equipment
Meanwhile, Union Power Minister Piyush Goyal said that the government was clear on its stance regarding 5% GST levy on solar equipment. If the equipment makers still have issues, it's unfortunate but the government won't be able to do anything. Industry members have sought clarity as to whether the 5% GST on solar modules is applied to other pieces of solar equipment as well.
