Seeks to amend notification No. 8/2017-IT(R) so as to specify rate @5% for standalone restaurants and @18% for other restaurants, reduce rate of job work on “handicraft goods” @ 5% and to substitute “Services provided” in item (vi) against Sl No. 3 in table. - 48/2017 - Integrated GST (IGST) Rate

Restaurant services tax differentiation: standalone food services taxed at a lower rate while hotel premises services face a higher rate.

Amendment revises IGST entries to distinguish restaurant supplies by location and declared tariff, imposing a lower rate for restaurants outside specified residential/lodging premises provided input tax credit on inputs is not taken, and a higher rate for restaurants located within specified hotels and similar commercial lodging premises meeting the declared tariff threshold. The amendment also substitutes an entry to treat certain services as composite supply of works contract and inserts manufacture of 'handicraft goods' as eligible for a reduced job-work rate, effective 15th November, 2017.