GST Amendments for Restaurant Services - January 2022
Official Notification:
Central Government, based on Council recommendations, introduces changes to GST rates for specific services.
Amendments in Notification:
Alters the notification No. 17/2017-Central Tax (Rate), dated June 28, 2017.
Expanded Clause (iv):
Adds a new clause (iv) covering "supply of restaurant service other than services by establishments at specified premises."
Definition Clarification:
Explanation amendment: Defines "motor cycle," "motor vehicle," and "omnibus" as per the Motor Vehicle Act, 1988.
Adds "specified premises" definition for hotels with tariffs above INR 7,500 per unit per day.
Effective Date:
Amendments effective from January 1, 2022.
Service Inclusions:
Now encompasses various motor vehicles and omnibuses within the amended clause.
Tariff Threshold for Specified Premises:
Specified premises defined with a tariff threshold for enhanced clarity.
Administrative Note:
Rajeev Ranjan, Under Secretary to the Government of India, issues the directive.
Intent and Impact:
Intended to streamline GST classifications for restaurant services and specified premises.
Compliance Expectations:
Businesses in the hospitality and restaurant sectors need to align with the revised GST structure.
Consumer Awareness:
Consumers may observe changes in bills from affected establishments, reflecting the amended GST rates.
Previous Amendments:
Highlights the history of amendments to the principal notification for context.
Legal Reference:
Refers to the Motor Vehicle Act, 1988, for the precise definitions of included terms.