GST on food and beverages

[Kaustubh Karandikar]

XYZ having a shop where they sale across the counter namkeen and sweetmeats. They also had a separate pani puri, shev puri counter in the same shop where people either eat the same by sitting on a cement platform made or take a parcel of the same. The GST rate for pani puri, shev puri will be 5% or 18%?

[Nandan Khambete]

As per my opinion, it can be considered as Restaurant and 5% GST charged.

Restaurant per se is not defined but word Restaurant is generally defined as a place where you can eat food and pay for it.

Also, the shop must be having Shops & Establishment act license. Hence 5% in my opinion.

[KASTURI SETHI]

Dear Sir,

This issue has been discussed in the decision of AAR Uttarakhand

2018 (19) G.S.T.L. 356 (A.A.R. - GST) = 2018 (11) TMI 1266 - APPELLATE AUTHORITY FOR ADVANCE RULING, UTTARAKHAND

[KASTURI SETHI]

Dear Sir,

Also peruse para 5.1 of the following AAR, Tamil Nadu:

Relevant extract para 65.28 & 29 of 23rd GST Council Meeting held on 10.11.17

"The take-away food from a restaurant shall have similar tax treatment as that for the restaurant. Outdoor catering shall, however, attract tax at the rate of 18% with input tax credit and there would be no change in composition scheme for restaurant."

2018 (17) G.S.T.L. 171 (A.A.R. - GST) = 2018 (9) TMI 1335 - AUTHORITY FOR ADVANCE RULING, TAMILNADU IN RE : GOODWILL INDUSTRIAL CANTEEN

[Ganeshan Kalyani]

The ruling shared by Sri Kasturi Sir clears the air. Relevant decision to the query.

AI Summary

GST on takeaway food treated like restaurant supply while outdoor catering attracts higher tax with input credit.
Whether shop-counter supplies like pani puri and shev puri are classed as restaurant supplies or as outdoor catering determines GST treatment. Take-away from a restaurant outlet is treated the same as in-house restaurant supplies, while outdoor catering is treated separately and attracts higher tax treatment with availability of input tax credit. Shop and establishment licensing of the outlet is relevant to classification.