Whenever you go to a restaurant, GST is added to the bill. But have you ever thought that there are many restaurants where it is not necessary to pay GST. Nor can those restaurants collect GST from the customers. Let us tell you about it…
Whenever you go out to party or eat with your family or friends. Then you have to pay GST ranging from 5 percent to 18 percent on the food in the restaurant. But do you know that there are many restaurants in the country where it is not necessary to pay GST. Nor do these restaurants have the right to collect GST from the customers. That is, at these places you can save the entire money to be charged as tax. Learn about…
There are many restaurants in India that register themselves under the composition scheme of GST. You are not required to pay GST on such restaurants, because they do not have the right to collect it from the customer. Now how to know which restaurant comes under the composition scheme and which is not?
How to identify a restaurant without GST
As a rule, restaurants that register themselves under the composition scheme have to clearly state in their restaurant that they are ‘composition tax and we cannot collect GST’. They have to write a similar thing on their bills as well. But most of the restaurants do not do this.
In this situation, you have another way that at whatever restaurant you are going to pay the bill after having food. his GST number GST Portal Go and search. From this you will know that what kind of GST comes under that restaurant. Then you can demand a bill without GST from the restaurant. Such restaurants do not have the authority to issue tax invoices.
GST rates applicable in restaurants
Let us now tell you which are those restaurants where you have to pay 5 percent GST on the bill, and where you have to pay 18 percent GST.
- If you are ordering food from Railways or IRCTC, then 5% GST will have to be paid.
- Similarly, standalone restaurant or standalone outdoor catering service also attracts 5% GST.
- If the restaurant or outdoor catering service is attached to a hotel where the room rent is less than Rs 7,500, then you have to pay only 5% GST.
- On the other hand, if the restaurant or outdoor catering is with a hotel, where the room rent is Rs 7,500 or more, then you will have to pay 18% GST.
Recently, former Infosys director Padma Shri T.V. Mohandas Pai had also shared a funny video about this.
Folks is this true? Can someone check and let us know?@FinMinIndia@cbic_india pic.twitter.com/1gcTp9RqwW
— Mohandas Pai (@TVMohandasPai) February 20, 2023
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