Most restaurants charge 5% GST without Input Tax Credit — standalone restaurants, dhabas, fast-food outlets, cafés and cloud kitchens, whether AC or non-AC. The 18% rate with ITC applies only to restaurants in specified premises — a hotel where any room's declared tariff is ₹7,500 or more per night. Food ordered via Zomato/Swiggy is taxed at 5%, paid by the platform. These rates were retained under GST 2.0 (effective 22 September 2025).
Restaurant GST Rate — All Categories
The applicable GST rate for every common restaurant and food-service category, with ITC eligibility. For a deeper walkthrough with worked examples, see our full GST on restaurant food guide.
| Restaurant Category | GST Rate | ITC | Notes |
|---|---|---|---|
| Standalone restaurant — dine-in | 5% | No | Default for most restaurants |
| Standalone restaurant — AC or non-AC | 5% | No | AC/non-AC distinction removed years ago |
| Dhaba / fast-food / café | 5% | No | Same restaurant supply |
| Takeaway / parcel | 5% | No | Same rate as dine-in |
| Restaurant in specified premises (≥₹7,500) | 18% | Yes | Premium / 5-star hotels |
| Restaurant in hotel — room tariff < ₹7,500 | 5% | No | Budget & mid-range hotels |
| Cloud kitchen (delivery-only) | 5% | No | Treated as a restaurant |
| Food via Zomato / Swiggy | 5% | — | Platform (ECO) pays the GST |
| Delivery & platform fee | 18% | — | Separate service by the app |
| Composition-scheme restaurant | 5% | No | ≤ ₹1.5cr; no GST on bill |
| Outdoor catering (standalone) | 5% | No | Weddings, offices, events |
| 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.
For a regular restaurant the deciding factor is simple: is it located in "specified premises" — a hotel where any room's declared tariff is ₹7,500 or more per night? If yes, it is 18% with ITC; if not, it is 5% without ITC. Air-conditioning no longer changes the rate.
5% vs 18% — Which Applies to You?
The 5% rate covers the overwhelming majority of restaurants and comes without Input Tax Credit. The 18% rate is reserved for specified premises and comes with full ITC.
Most restaurant services — no ITC
- Standalone restaurants & budget-hotel outlets
- Dine-in, takeaway & parcels
- Cloud kitchens, dhabas & 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
The 5% rate is not always cheaper for the owner. Because 5% blocks ITC, GST paid on rent, gas, equipment and packaging becomes an embedded cost. A specified-premises restaurant at 18% can recover that input GST, so the effective cost picture depends on your input base, not just the headline rate.
Not sure which rate your restaurant should charge?
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. For restaurant food routed through the app, the liability to pay the 5% GST 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 does not pay tax on them again.
- This rule brought even sub-threshold restaurants into the GST net through the platform.
5% Standalone restaurant order
18% Specified-premises order
Selling on Zomato/Swiggy? Reconcile your payouts with your GST returns.
Get Restaurant GST Advice →Composition Scheme — Flat 5%
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 with 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
- 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). Below that, no GST is charged on direct bills, though platform orders are still taxed by the ECO.
- 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
- GSTR-9 annual return
- Composition CMP-08 / GSTR-4 (if opted)
Frequently Asked Questions
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Charging the Right Restaurant GST Rate?
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