Food from restaurants inside hotels with room rents of above ₹7,500 per day will continue to attract 18% GST.
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Hoteliers have been confused over a listing in the exercise to revamp the Goods and Services Tax (GST). While the announcement says Indian rotis, including parathas, will not attract any tax, many are asking why idli, dosa, puttu, idiyappam and other South Indian staples have not been exempted.
“We have to wait for the amendment. We cannot depend on the press release since it is not very clear. It is confusing. Changes can still be made. There are similar confusions like in the case of bricket fuel and fire wood,” said a GST expert, who did not want to be named.
A hotelier suggested that the exemption could perhaps be for packet rotis and the like and sold in stores as commodities. All items in restaurants are considered food and would attract the same GST.
Earlier in the day, Tamil Nadu Hotels Association president M. Venkadasubbu said that the lack of input tax credit was a major issue for restaurants. “Sweet and savouries manufacturers have been provided the credit.” Similarly, the request to reduce GST on commercial cooking gas seems to have been overlooked.
Food from restaurants located inside hotels with room rents of above ₹7,500 per room per day will continue to attract 18% tax. “It is unfair on people who come from outside to just have food. Both have to be de-linked,” he pointed out.
The association welcomed the reduction of GST for items such as UHT milk, paneer and milk-based products and the increase in products that have added sugar.
Published – September 05, 2025 05:30 am IST
