- The West Bengal AAR ruled that serving hookah in restaurants is not part of restaurant service under GST law.
- Hookah, whether tobacco-based or herbal, is not considered “food” or “drink” as it is inhaled, not ingested.
- The supply of hookah is treated as a separate composite supply, with the principal supply being the tobacco or non-tobacco product.
- Hookah must be taxed independently at rates applicable to its principal goods, not at the concessional restaurant service rate.
Source: taxand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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