Many people don’t pay close attention to their restaurant bills, but those who do will notice that the bill includes charges for both CGST and SGST. Have you ever wondered if all restaurants are required to charge these taxes, or if there is a way to avoid them? To answer these questions, you first need to understand what CGST and SGST are.
What are CGST and SGST?
CGST refers to the tax amount that goes into the central wallet, while SGST is the tax amount that goes into the state’s wallet. Different eating establishments have varying GST rates, as follows:
- For non-AC/non-alcohol-serving restaurants, the rate is 12%.
- For AC/alcohol-serving restaurants, the rate is 18%.
- For luxurious or 5-star restaurants, the rate is also 18%.
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