CBIC vide Circular No. 164/20/2021-GST dated October 06, 2021 has provided clarification regarding GST rates & classification based on the recommendations of the GST Council in its 45th meeting held on September 17, 2021.
Under Notification No. 11/2017 – CTR the term ‘restaurant service’ is defined as below ‘Restaurant service‟ means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, 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.’
The explanatory notes to the classification of service state that restaurant service‟ includes services provided by Restaurants, Cafes and similar eating facilities 𝐢𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬, 𝐫𝐨𝐨𝐦 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐝𝐨𝐨𝐫 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐲 𝐨𝐟 𝐟𝐨𝐨𝐝.
Accordingly, service by an entity, by way of cooking and supply of food, even if it is exclusively by way of takeaway or door delivery or through or from any restaurant would be covered as restaurant service.
Accordingly, it is clarified that service provided by cloud kitchens/central kitchens are covered under ‘restaurant service’, as defined in notification No. 11/2017- Central Tax (Rate) and 𝐚𝐭𝐭𝐫𝐚𝐜𝐭 𝟓% 𝐆𝐒𝐓 [ 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐈𝐓𝐂].