Know if paying both CGST and SGST at restaurants is mandatory

In India, GST (Goods and Services Tax) was introduced in 2017 as a comprehensive tax system, which replaced all other indirect taxes like VAT, service tax, and excise duty. GST is divided into three categories — Central GST (CGST), State GST (SGST), and Integrated GST (IGST). CGST is levied by the central government, whereas SGST is levied by the state government.

One common question that arises when dining at restaurants is whether paying both CGST and SGST is mandatory or not. The answer to this question is yes, it is mandatory to pay both CGST and SGST at restaurants.

The reason for this is that restaurants fall under the purview of the service sector, and GST is applicable to all services provided. As per the GST laws, any service provided within a state is subject to both CGST and SGST. Therefore, when you dine at a restaurant, both CGST and SGST are charged on your bill.

It’s essential to note that the rate of GST charged on food and beverages at restaurants varies depending on whether it’s an AC or non-AC restaurant. AC restaurants charge a higher rate of 18% (9% CGST and 9% SGST), while non-AC restaurants charge a lower rate of 5% (2.5% CGST and 2.5% SGST).

In conclusion, it’s mandatory to pay both CGST and SGST at restaurants as per the GST laws in India. Therefore, next time when you dine out, don’t be confused about the GST rates on your bill, as it’s the standard practice followed across all restaurants in India.

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