GST on Restaurant Food in India —
5% or 18%?
Know the correct GST rate for restaurant services, Zomato/Swiggy orders, cloud kitchens, ITC, the composition scheme and restaurant compliance.
For most restaurant services, GST is charged at 5% without ITC. Restaurants in specified premises — a hotel with a declared room tariff of ₹7,500 or more per night — attract 18% with ITC. Zomato/Swiggy orders are taxed at 5%, paid by the platform.
GST Rate for Restaurants — Decision Table
The GST rate for every common restaurant and food-service scenario in India, with ITC eligibility.
| Type of Supply | GST Rate | ITC | Notes |
|---|---|---|---|
| Standalone restaurant — dine-in | 5% | No | Default for most restaurants |
| Standalone restaurant — takeaway | 5% | No | Same as dine-in |
| Restaurant in specified premises (≥₹7,500) | 18% | Yes | Premium / 5-star hotels |
| Food via Zomato / Swiggy | 5% | — | Platform (ECO) pays the GST |
| Delivery & platform fee | 18% | — | Separate service |
| Cloud kitchen (delivery-only) | 5% | No | Treated as a restaurant |
| Composition-scheme restaurant | 5% | No | ≤ ₹1.5cr; no GST on bill |
| Outdoor catering (standalone) | 5% | No | Weddings, events |
| Banquet / marriage hall | 18% | Yes | Renting of premises |
| Alcohol served | Outside GST | — | State VAT/excise applies |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025. Confirm on the official GST portal before invoicing.
Which GST Rate Applies to You?
One factor decides it for regular restaurants: whether the restaurant is in "specified premises" — a hotel where any room's declared tariff is ₹7,500 or more per night.
Most restaurant services — no ITC
- Standalone restaurants & budget-hotel outlets
- Dine-in and takeaway
- Cloud kitchens & cafés
- Zomato / Swiggy restaurant orders
- Input Tax Credit not available
Specified premises — with ITC
- Restaurants in hotels with room ≥ ₹7,500/night
- Most 5-star hotel restaurants
- Luxury-hotel banquets & catering
- Full input-tax credit available
- Different compliance implications
Not sure which rate applies to your restaurant?
Get My GST Rate →GST on Zomato & Swiggy Orders
Since 1 January 2022, Zomato and Swiggy are Electronic Commerce Operators (ECOs) under Section 9(5) of the CGST Act. The responsibility to pay the 5% GST on restaurant food shifted from the restaurant to the platform.
- The food value is taxed at 5% — deposited by the platform, not the restaurant.
- Delivery and platform/convenience fees are a separate service taxed at 18%.
- The restaurant reports these supplies in its GST returns but pays no tax on them again.
How GST Adds Up — ₹500 Order
5% Restaurant food order
18% Specified-premises order
On a Zomato/Swiggy delivery, the 5% on food is remitted by the platform; separate delivery and platform fees carry 18% as the platform's own service.
If your restaurant is on the 5% rate, Input Tax Credit is not available — GST paid on rent, equipment, gas and packaging becomes an embedded cost you price into the menu. Only 18% (specified-premises) restaurants can claim ITC.
Selling on Zomato/Swiggy? Get your payouts reconciled with your GST returns.
Get Restaurant GST Advice →Composition Scheme — Should You Opt?
Restaurants are the only service explicitly eligible for the composition scheme: a flat 5% (2.5% CGST + 2.5% SGST) on turnover up to ₹1.5 crore (₹75 lakh in special-category states), with quarterly CMP-08 and annual GSTR-4.
Consider it if
- Turnover is small and mostly local walk-in customers
- You want simpler, quarterly compliance
- You don't rely on input-tax credit
Be careful if
- You need ITC on rent, equipment or inputs
- You make inter-state supplies or sell via e-commerce
- Your model doesn't fit the scheme's limits
A composition restaurant pays 5% from its own pocket, cannot charge GST on the bill, and must display "composition taxable person, not eligible to collect tax" on signage.
Want us to check if composition saves you money?
Talk to a GST Expert →Restaurant GST Compliance Checklist
Registration is mandatory once aggregate turnover crosses ₹20 lakh (₹10 lakh for special-category states). Here's the full compliance picture for a restaurant or cloud kitchen:
- GST registration (GSTIN)
- Correct GST rate classification
- Tax invoice / bill of supply
- Zomato / Swiggy reconciliation
- GSTR-1 (outward supplies)
- GSTR-3B (monthly/quarterly)
- ITC reconciliation (if 18%)
- E-invoicing applicability
- E-way bill (where relevant)
- GSTR-9 annual return
- Books & records upkeep
- Composition CMP-08 / GSTR-4 (if opted)
Choosing the GST rate isn't only about the percentage — ITC availability can materially change your actual tax cost. A restaurant in specified premises at 18% may end up cheaper after credits than a 5% outlet that absorbs input GST.
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