GST rate differentiation for restaurants affects input tax credit eligibility and alters consumer and operational tax incidence on food services.
GST on food and restaurant services differentiates tax treatment by service characteristics and product classification, with nil treatment for many fresh foodstuffs and escalating rates for processed, packaged, preserved or branded products. Eligibility for input tax credit is tied to the rate charged: suppliers at lower rates are ineligible for ITC while those at higher rates can claim it, producing operational effects on working capital and consumer pricing, and maintaining separate service charges in restaurant billing. (AI Summary)

Casual income tax treatment: flat taxation applies and payors must deduct tax at source on prize winnings.
Casual income is an irregular one time receipt taxable under Income from Other Sources; expenses to earn it are not deductible and losses cannot be set off. Winnings from lotteries, games and similar events are typical examples and are taxed at a flat rate with cess, while payors must deduct tax at source on specified prizes and value in kind awards for tax purposes. Receipts reflecting skill or constituting business activity are not treated as casual income and are taxed under the appropriate heads. (AI Summary)