TaxTMI 
TaxTMI 
TaxTMI 
Dear sir,
What is the rate of tax cigarettes supplied in Bar and restaurant, whereas as food rate is 5%. HSN/SAC code. please clarify.
Rate of tax
Bharat Cholleti
Debate on GST Rate for Cigarettes in Restaurants: 5% or 28% as per Notification No. 1/2017? A query was raised regarding the Goods and Services Tax (GST) rate on cigarettes supplied in bars and restaurants, where the food tax rate is 5%. One participant clarified that cigarettes fall under heading 2402, attracting a 28% tax plus compensation cess, as per Notification No. 1/2017. Another participant argued that cigarettes supplied as part of restaurant services could be taxed at 5%, citing provisions of the CGST Act, 2017. However, others warned against this approach, emphasizing the risk and advising adherence to the 28% rate to avoid disputes. A reference to a Delhi High Court order on a related issue was also mentioned. (AI Summary)