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GST on mineral water sold by restaurant

Jayesh NP (Tax Practitioner) (175 Points)

24 May 2018

What is the tax rate for supply of soda/ cola sold in restaurant. Is it service taxable @ 5% or sale taxable @ 18%/28%?

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8 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 24 May 2018

It is @ 5%

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Vinod Babu (24191 Points)
Replied 24 May 2018

It depend upon you registration. If you gst registration is regular then 18% is taxable and should be collected from the customer.

If the gst registration is of composition type then 5% gst to be paid by the restaurant on their supplies but not to collect such tax from the customer.

Jatin (Accountant) (3479 Points)
Replied 24 May 2018

Agree With Mr. Vinod

Vinod Babu (24191 Points)
Replied 25 May 2018

Sorry i miss out one thing.

In case of regular type 28% is taxable for colas items sold in restaurant.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 May 2018

Yes... I agreed to Mr Vinod Babu.,

Also note the Point no need exceeding the values in MRP.

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Jayesh NP (Tax Practitioner) (175 Points)
Replied 25 May 2018

I think MRP is not applicable for goods sold in restaurant as there is element of service also.

BK BHAT (PROFESSIONAL) (22 Points)
Replied 28 May 2018

TRUE, REFER: CIVIL APPEAL NO. 21790 OF 2017 (Arising out of S.L.P. (C) No. 28685/2015)
FEDERATION OF HOTEL AND RESTAURANT ASSOCIATIONS OF INDIA Vs UNION OF INDIA AND ORS. (SUPREME COURT)