GST on restaurant food in India: the 2026 rates.
What to charge on dine-in, takeaway and delivery app orders, when 18% applies, how the composition scheme works, and a bill worked out line by line.
Updated 5 October 2026
Standalone restaurants in India charge 5% GST (2.5% CGST + 2.5% SGST) without input tax credit, whether the food is eaten in, taken away or delivered by the restaurant. Restaurants in specified hotel premises charge 18% with input tax credit. On Swiggy and Zomato orders the app pays the GST. Composition restaurants pay 5% of turnover themselves and show no GST on bills.
What are the GST rates for restaurants?
| Where the food is served | GST rate | Input tax credit |
|---|---|---|
| Standalone restaurant, café, dhaba, eating joint (AC or non-AC) | 5% (2.5% CGST + 2.5% SGST) | Not allowed |
| Takeaway and own delivery from the same restaurant | 5% | Not allowed |
| Restaurant in a “specified premises” (see below) | 18% (9% + 9%) | Allowed |
| Orders through Swiggy, Zomato and other apps | 5%, paid by the app | Not applicable to the restaurant |
| Composition scheme restaurant | 5% of turnover, paid by the restaurant | Not allowed; no GST on bills |
The rates come from entry 7 of Notification 11/2017-Central Tax (Rate), as amended. GST law defines restaurant service as food or drink supplied by a restaurant, eating joint, mess or canteen “whether for consumption on or away from the premises”, which is why takeaway is taxed like dine-in (HNA & Co on the notification).
When does a restaurant charge 18% GST?
Only when it is inside a specified premises. From 1 April 2025, a premises is specified for a financial year if, in the previous financial year, it supplied hotel accommodation with the value of any room above ₹7,500 per unit per day, or if the hotel has declared it as specified. Restaurants there charge 18% and can claim input tax credit (CBIC FAQs on specified premises, March 2025).
A standalone restaurant cannot choose 18% to get input tax credit. The 56th GST Council recommended explanations to make exactly this clear (GST Council press release, 3 September 2025).
Did GST 2.0 change restaurant GST?
The GST rate changes that took effect on 22 September 2025 cut GST on hotel rooms costing up to ₹7,500 a night from 12% to 5% without input tax credit (Notification 15/2025-Central Tax (Rate)). The rate for restaurant services did not change: still 5% without ITC, or 18% with ITC in specified premises.
Who pays GST on Swiggy and Zomato orders?
From 1 January 2022, restaurant services supplied through an e-commerce operator come under Section 9(5) of the CGST Act. The delivery app collects the 5% GST from the customer and pays it to the government (Notification 17/2021-Central Tax (Rate)). The restaurant does not charge GST on those orders again, but it still reports them in its returns as supplies made through an e-commerce operator. Your CA will show these separately from your counter sales.
How does the composition scheme work for restaurants?
- Who can join: restaurants with aggregate turnover up to ₹1.5 crore in the previous year (₹75 lakh in some special category states).
- Tax: 5% of turnover (2.5% CGST + 2.5% SGST), paid by the restaurant out of its own revenue.
- On the bill: no GST is charged to the guest. The restaurant issues a bill of supply, not a tax invoice, with “composition taxable person, not eligible to collect tax on supplies” at the top.
- No input tax credit, and the words “composition taxable person” must also be displayed at the premises.
- Restaurants that serve alcohol are generally not eligible, because alcohol is outside GST. Confirm with your CA.
A bill worked out: ₹500 of food at 5%
Most restaurants show menu prices before GST and add GST at the bottom of the bill:
| Line | Amount |
|---|---|
| 2 × Paneer Tikka @ ₹180 | ₹360.00 |
| 2 × Butter Naan @ ₹70 | ₹140.00 |
| Taxable value | ₹500.00 |
| CGST @ 2.5% | ₹12.50 |
| SGST @ 2.5% | ₹12.50 |
| Total | ₹525.00 |
If your menu prices already include GST, a ₹525 bill contains a taxable value of ₹500 (₹525 ÷ 1.05) and ₹25 of GST. The guest pays the same either way; only the presentation changes. Our restaurant GST calculator does this split for any amount.
A composition restaurant would bill the same food at ₹525 with no GST line, and pay 5% of ₹525 (₹26.25) as tax itself.
What does this mean for your billing software?
Your POS should handle all three modes (regular GST, composition and no GST), split CGST and SGST by rate, support prices with or without tax, and give your CA a GST report each month. Venditas GST billing does all of this and prints your GSTIN and FSSAI number on every bill. It does not file returns or export to Tally yet, so your CA works from its GST report and CSV downloads. What else a bill must show is in our restaurant bill format guide, including the FSSAI number rule. GST billing is part of the ₹3 per order price.
This guide is general information as of October 2026, not tax or legal advice. GST rules change often; check your own case with your CA.
Sources
- GST Council: recommendations of the 56th meeting (3 September 2025)
- CBIC FAQs on restaurant service supplied at specified premises (March 2025), via Taxguru
- Notification 15/2025-Central Tax (Rate), hotel accommodation up to ₹7,500, summary by TaxO
- GST on restaurant services through e-commerce operators (Section 9(5)), Taxguru
- Restaurants under the GST composition scheme, ClearTax
Quick answers
What is the GST rate on restaurant food in India?
For standalone restaurants, including AC restaurants, GST is 5% (2.5% CGST + 2.5% SGST) without input tax credit. Restaurants in “specified premises” (hotels where a room went for more than ₹7,500 a night in the previous year, or premises the hotel declared) charge 18% with input tax credit.
Did GST 2.0 in September 2025 change the restaurant rate?
No. The 56th GST Council cut GST on hotel rooms up to ₹7,500 a night to 5% from 22 September 2025, but restaurant services stayed at 5% without ITC (18% with ITC in specified premises). The Council also clarified that a standalone restaurant cannot declare itself a specified premises to charge 18%.
Is GST on takeaway food different from dine-in?
No. Under the GST definition, restaurant service covers food served for consumption on or away from the premises, so takeaway and the restaurant’s own delivery are charged at the same rate as dine-in.
Do restaurants charge GST on Swiggy and Zomato orders?
No. Since 1 January 2022, the delivery app (the e-commerce operator) collects and pays the 5% GST on restaurant food ordered through it, under Section 9(5) of the CGST Act. The restaurant reports these sales but does not charge GST on them again.
Can a restaurant under the composition scheme show GST on the bill?
No. A composition restaurant pays 5% of its turnover as tax from its own pocket, cannot collect GST from guests, cannot claim input tax credit, and must issue a bill of supply with the words “composition taxable person, not eligible to collect tax on supplies” at the top.
Is GST charged on alcohol in restaurants?
No. Alcoholic liquor for human consumption is outside GST; states charge VAT on it. Restaurants usually bill liquor separately from food. Check your state’s rules with your CA.
Can I claim input tax credit as a standalone restaurant?
No. The 5% rate for restaurant services comes without input tax credit, so GST paid on ingredients, rent or equipment cannot be set off against the GST you collect.
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