Kerala Authority for Advance Ruling (KAAR) Decides on GST for Unbranded Food Sales at Separate Counters

According to the Business Line, the Kerala Authority for Advance Ruling (KAAR) has ruled that selling chat, lassi, and vada-pav through a separate counter without a brand name inside a shop constitutes a ‘restaurant service’ and attracts a 5% GST. This rate increases to 18% if the counter is in a hotel with room tariffs of INR7,500 or more.

Devalokam Bakery in Ernakulam, which sells various snacks through a separate counter, sought clarification from KAAR. The ruling stated these sales fall under ‘restaurant services,’ with GST rates varying based on location and conditions. This decision impacts similar businesses and could influence future policy changes.