5% GST on Services by Cloud Kitchens covered under ‘Restaurant Service’, GST Council issues Clarification on GST rate on Services

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In the  45th  GST Council meeting held today in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman various clarifications in relation to the GST rate on services has been announced.

The Finance Minister, Nirmala Sitharaman has clarified that the coaching services to students provided by coaching institutions and NGOs under the central sector scheme of ‘Scholarships for students with Disabilities” is exempt from GST

Further, the services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST [without ITC]. Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by parlors would attract GST at the rate of 18%.

In addition, overloading charges at toll plazas are exempt from GST being akin to toll. The renting of vehicles by State Transport Undertakings and Local Authorities is covered by the expression ‘giving on hire’ for the purposes of GST exemption.

The services by way of grant of mineral exploration and mining rights attracted a GST
rate of 18% w.e.f. July 1, 2017.

Furthermore, admission to amusement parks having rides, etc. attracts a GST rate of 18%. The GST rate of 28% applies only to admission to such facilities that have casinos etc.

Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products.

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