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
consideration.
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
