GST RATE SLAB FOR HOTEL INDUSTRY

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Rangan Biswas

Rangan Biswas (Querist)

29 May 2017 Please inform me about the GST rate slab for hotel industry

CA Mohit Kumar

CA Mohit Kumar (Expert)

30 May 2017 GST rate is as per tarriff basis.... till 1000- no gst. , 1000-2500 - 12% 2500-5000- 18% after 5000 - 28%

Rangan Biswas

Rangan Biswas (Querist)

30 May 2017 what is for f&b business?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 July 2024 For the Food & Beverage (F&B) industry, GST rates and classifications can vary based on the specific type of service or product. Here’s a comprehensive overview of GST rates and HSN/SAC codes relevant to different aspects of the F&B business:

### GST Rates for Food & Beverage Business

#### 1. **Restaurant Services**

**GST Rate:**
- **Dine-In:** **5%** (without Input Tax Credit)
- **Takeaway and Delivery:** **18%** (with Input Tax Credit)

**HSN Code:**
- **Restaurant Services:** Typically falls under **9963**

#### 2. **Catering Services**

**GST Rate:**
- **Catering Services:** **18%**

**HSN Code:**
- **Catering Services:** **9963**

#### 3. **Sale of Packaged Foods (Retail Sale)**

**GST Rate:**
- **Packaged Foods (such as snacks, beverages, etc.):**
- **5%** or **18%**, depending on the specific product and packaging

**HSN Code:**
- **Packaged Foods:** Depends on the specific product, generally falls under **1905** (for baked goods), **2106** (for food preparations), and others based on the product category

#### 4. **Alcoholic Beverages**

**GST Rate:**
- **Alcoholic Beverages:** Not covered under GST; falls under the state excise duty regime

**HSN Code:**
- **Alcoholic Beverages:** N/A under GST

#### 5. **Non-Alcoholic Beverages**

**GST Rate:**
- **Non-Alcoholic Beverages (e.g., fruit juices, soft drinks):** **18%**

**HSN Code:**
- **Non-Alcoholic Beverages:** **2202** (for non-alcoholic beverages)

### Key Points:

- **Input Tax Credit (ITC):** Restaurants and caterers opting for a 5% GST rate do not get ITC. Businesses opting for an 18% GST rate can avail of ITC.
- **Classification:** Accurate classification of goods and services under the correct HSN/SAC codes is essential for compliance.
- **State-specific Regulations:** Alcoholic beverages are subject to state-specific excise duties and are not covered under GST.

### Recommendations:

- **Consult a Tax Professional:** For tailored advice and compliance, particularly for complex situations or high-value transactions, consulting with a GST professional or tax advisor is recommended.

- **Stay Updated:** GST regulations can change, so keeping updated with the latest notifications and amendments from the GST Council is crucial.

This overview should help you navigate the GST rates and classifications relevant to the Food & Beverage industry.

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