What is the tax rate on supply of food by a restaurant? Whether Input Tax Credit can be availed by a restaurant?
Supply of Food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having license to serve liquor will be taxed at 12% with full ITC.
Supply of Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year will be taxed at 18% with full ITC.
Supply of Food/drinks in restaurant having license to serve liquor will be taxed at 18% with ITC.
Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises will be taxed at 18% wit hfull ITC.
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