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On Food services, the GST is to be paid at the rate of 5%, 12% or 18%. It depends on many factors that include but is not limited to the type of location and establishment of any restaurant, cafe or food service provider. It should also be noted that alcoholic beverages still charge VAT as it is a state-level tax. Hence, restaurants serving both food and alcoholic beverages charge tax. In addition to this, food items purchased by common people also attract GST ranging from nil to 18% GST. GST on the food business has been explained in detail in this article. The tax rates in the food business can be charged under the composition scheme and hence on its applicable tax rate.
The key rates that apply to GST on food business are as follows:
The GST on the food business at the cafe is similar and equivalent to that of a conventional restaurant. However, for a cafe or mess or canteen that usually operates on a contract basis at the office, school, industrial unit etc the GST rate is 5%.
GST on Food Business Related to Food Items
The key GST rates applicable to some common food items in food business are as follows:
Restaurants not serving alcohol can pay GST as per the composition scheme. Which means they need to pay tax at a lower rate. Hence, GST on food business rates varies from time to time. Whenever the Government wants to change the rate they can do so. The rates are not fixed for all time.
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