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Extra GST upon Bisleri mineral water at restaurant

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Wed Jul 26 2023

1079

Hi, I went to a restaurant. Bisleri mineral water bottle was served there. The MRP was 20rs (including all taxes) ...which was printed upon the wrapper. But when I finished my food and asked for bill, I saw that the amount of that bisleri bottle i.e. 20rs was added and 5% GST was charged upon that. It is legal ??

Wed Jul 26 2023

0

Yes, in restaurants it is legal. Even if you consume any other beverage such as coke, pepsi which has 28%+12% GST rate, still the restaurants can charge you 5% GST.

They are not selling water bottle, they are supplying "Restaurant Service" which may include "goods, being food or any other article for human consumption or drink". The relevant portion of Notification No. 46/2017-Central Tax (Rate) is reproduced below for your reference -

Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied.

But when Bisleri water bottle is sold separately as goods on a shop, they cannot charge you more than MRP as it is inclusive of GST.

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