Now after GST implementation all over India on all kinds of business the food prices also changes, this also effects on restaurant business here in this post we explain it to you about the GST effects on restaurant business. Before GST no one look at the bill tax paid by he/she in any restaurant but with GST everyone looks the tax he/she going to pay in the bills.
GST ON RESTAURANT BILLS: Before GST the restaurant charged tax in their bills as:
GST ON RESTAURANT BILLS: Before GST the restaurant charged tax in their bills as:
- Service tax for the services is 6%.
- VAT charged on the food is 14.5%.
- Service charges 10% added extra by the restaurant for their own pockets no given to the government.
- Krishi kalyan tax
- Swacch Bharat Cess
Now the total tax calculated be more than 20 % plus the 10% extra tax not given to the govt. But GST make it a single tax here other taxes are removed. GST rates are explained below:
- NON-AC RESTAURANTS: Those do not serve alcohol, road side Dhabas, eateries and local food delivery comes into this have 5% GST(2.5% CGST,2.5% SGST)
- NON-AC RESTAURANTS(SERVE ALCOHOL): 5% GST
- AC-RESTAURANTS: 5% GST
- PARTIAL AC AND PARTIAL NON AC RESTAURANTS: 5% GST
- FIVE STAR RESTAURANTS: 18% GST
Service charges not banned ,restaurants can charge the service charge in their bills but it is on to the customer if they like the service than can give the charge else it is not mandatory.
Also the GST on grocery items like wheat,spices,oil etc have gst only 5% that is beneficial for
SOME SOFTWARE TO MANAGE THE BILLS WITH ACCOUNTING FOR GST IS HERE:
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