5% GST on Cloud Kitchens services covered by “Catering Service”, GST Council issues clarification on GST rate on services

GST - cloud kitchens - central kitchens - Consulting GST - GST - Taxscan

At the 45th GST Council meeting held today in Lucknow under the chairmanship of Minister of Finance and Union Affairs, Smt. Nirmala Sitharaman, various clarifications regarding the rate of GST on services have been announced.

Finance Minister Nirmala Sitharaman clarified that student coaching services provided by coaching institutions and NGOs under the central sector program of “Grants for Students with Disabilities” are exempt from GST.

In addition, cloud kitchen / central kitchen services are covered by “catering service” and attract 5% GST. [without ITC]. The ice cream parlor sells already made ice cream. Such an offer of ice cream by salons would attract GST at the rate of 18%.

In addition, overload charges at toll plazas are exempt from the GST, which is similar to tolls. The rental of vehicles by public transport companies and local authorities is covered by the term “re-hire” for the purposes of exemption from GST.

Services through the granting of exploration and mining rights attracted a GST
rate of 18% as of July 1, 2017.

In addition, admission to amusement parks with rides, etc. attracts an 18% GST rate. The 28% GST rate only applies to admission to those establishments which have casinos etc.

Alcoholic beverages intended for human consumption are not food and food products for the purpose of entry requiring a 5% GST rate on labor services related to food and food products.

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