VAT on Sale of food Articles is authorized by clause (f) of Article 366 (29A) of the Constitution

It states that

“tax on sale or purchase” includes “a

tax on supply, by way of or as part of any service or in any other manner whatsoever, of

goods, being food or any other article for human consumption or any drink (whether or not

intoxicating) where such supply or service is for cash, deferred payment or other valuable


Hence, VAT is charged on sale of food in hotel or restaurant


Also Service tax is imposed on the same

Hence, there is double taxation on food items

  1. Indirect Tax
  2. Vat

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.