What is the GST rate for online food delivery?

What is the GST rate for online food delivery?

Online food delivery services are provided at a commission of around 20 percent (including 18\% GST). Restaurants can no longer claim ITC on the 18 percent GST against input services from these delivery platforms.

Is service tax applicable on takeaway food?

The parcels are brought to a separate counter and are picked up.” Thus, the court held that food and drink taken away in parcels by restaurants do not attract service tax under the Act.

Can restaurants charge service tax and GST?

So, as per law, Service Tax has been phased out by GST and customers are not supposed to pay it. However, the Service Charge is still applicable.

Should we pay service charge in restaurants?

Metrolife spoke to P Chandrashekar Rao, president of Bruhat Bangalore Hotels Association, says restaurants must abide by the rule concerning service charge. “Yes, it is not compulsory to pay service charge if the customer does not want to. If any restaurant forces you to pay, they are breaking the law,” he says.

Is GST required for Swiggy?

Finance Minister Nirmala Sitharaman announced on Friday that apps like Swiggy and Zomato will be treated as restaurants and five percent GST will be levied on supplies made by them. However, there would be no extra tax burden on the end consumers taking food delivery from restaurants registered with the GST.

Is it compulsory to give service charge?

We can say that service charges are not mandatory to pay and you can refuse to pay if they are charged over the bill. If restaurant or hotel forced you to pay then you can approach to the Consumer Dispute Redressal Commission or Consumer Forum having appropriate jurisdiction.

Is it optional to pay service tax at restaurant?

According to Union government approved guidelines in 2017, service charge on hotel and restaurant bills are voluntary and not mandatory. When he received his bill, he noticed he had been charged a 10\% service charge, in addition to the goods and service tax (GST).

Can I remove service charge?

Since the government’s clarification on the service charge being voluntary is only a directive and not a law yet, the consumer can move to consumer court if their request for removing the service charge from the final bill is declined.

Is service tax applicable on home delivery of food?

When we buy goods and goods are delivered to our place then service tax is applicable on freight not on total amount of goods. Therefore, in case of home delivery , if delivery charges is taken then service tax should be applicable on delivery charges not food which is treated as goods….

Do restaurants have to charge service tax on take-away orders?

A view was entertained that Take-away or Home-delivery Orders should not be taxed since no services, amenities etc. of the Restaurants were being offered to the customers in case of Take-away or Home delivery of food. But, in the absence of any clarification, the Restaurants continue to levy Service tax on the same.

Is food subject to sales tax?

Truth be told, food tends to have some of the most convoluted sales tax laws out there. Rare is the state that has the same tax policy for all food sales. On-premises dining is almost always subject to sales tax, and in some cities, it’s taxed at a higher rate than other sales. By contrast, takeout food may be exempt.

Do you have to charge sales tax on non-taxable services?

If your invoices don’t clearly describe what you are selling and segregate your services from any taxable goods, chances are good that the state will consider you a seller of goods rather than services. And as such, you could be legally required to collect sales tax on the total invoice amount, including the non-taxable services you’re providing.