GST Rates

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Dear Member,

As announced by the Government of India GST rates for services have been finalised.

There are four slabs of GST rates -5%,12%;18% and 28% applicable to the service industry.

The tax on hotel and restaurants is as follows:

Restaurants:

Small restaurants with a turnover of RS.50 lakhs will be taxed at a composite rate 5%  Tax that is they can opt for a scheme where they can avail a 5% tax with no tax credits.

Non-AC Restaurants  and those restaurants with no liquor license will attract a tax @ 12 %  Tax

Restaurants with AC or central heating @ 18% Tax

Restaurants with a liquor licence to serve alcohol @18% Tax

AC Restaurants located inside 5 Star and above hotel will be taxed at @ 28%.

Hotels:

For hotels with a tariff lower than Rs.1000/- there will be No tax

For Hotels with a tariff ranging above Rs.1000 to Rs.2500/- per day tax rate will be @ 12%.

For Hotels with a tariff ranging above Rs.2500 to Rs.5000/- per day tax rate will be @ 18%.

For Hotels with a tariff of Rs.5000/- and above per night tax rate will be  @28%

Banquets and Outdoor Catering

Supply of food and drinks in Outdoor catering @ 18% Tax.

Bundled services by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention centre, club, pandal, shamaina or any other place specially arranged for organizing a function ) together with renting of premises. Will be taxed @ 18%.

The Schedule of GST  Rates is attached for your ready reference.

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