CHENNAI: The Madras HC has held that service tax will not be applicable on takeaway orders in restaurants and hotels.
Justice Anita Sumanth passed the order while allowing a batch of pleas moved by popular restaurant chains, including Anjappar, Thalappakatti and Sangeetha Hotels, challenging the notices issued by the commissioner of GST and central excise demanding service tax for takeaway orders.
The bench held that such provision of food and drink taken away from restaurants tantamount to “only sale and not consumption” at the restaurant attracting service tax.
Service tax not applicable on takeaways: Madras high court
