Restaurant GST Rate in India: GST on Restaurant Food & Bills

GST is an important part of restaurant billing and accounting in India. The applicable GST treatment can depend on the type of restaurant service, whether the restaurant is located in specified hotel premises, and other circumstances. For standard restaurant services, the commonly applicable rate is 5% without input tax credit (ITC). Certain restaurant services in specified hotel premises can attract 18% with ITC under the applicable rules. > **Important:** GST rules can change and specific business circumstances can affect the applicable rate. Restaurants should verify the current rules with a qualified tax professional or official GST sources before applying a rate. ## GST on Restaurant Food Restaurant services generally have specific GST treatment rather than simply applying the standard 18% rate used for many services. The GST Council's official material records restaurant services at 5% without ITC in the relevant standard category. ## GST on Restaurant Bills Restaurant billing should clearly reflect the applicable GST treatment. For a restaurant operating under the applicable 5% restaurant-service rate, the tax is generally divided between: * **CGST** — 2.5% * **SGST** — 2.5% *(for an intra-state supply.)* ## Does a Restaurant Get Input Tax Credit (ITC)? Under the 5% restaurant-service rate, input tax credit is generally not available. Specified hotel-premises restaurant services that fall under the 18% rate can have ITC eligibility under the applicable rules. ## Restaurant GST Rate — Quick Overview | Restaurant Situation | GST Treatment | | :--- | :--- | | Common restaurant services | 5% without ITC | | Certain specified hotel-premises restaurant services | 18% with ITC | | Takeaway restaurant service | Generally follows applicable restaurant-service treatment | | Other supplies/services | May have different GST treatment | *The exact treatment should be checked against the current notification and facts of the business. Official GST materials confirm the 5% restaurant-service treatment and the specified hotel-premises distinction.* ## Restaurant GST FAQs **What is the GST rate for restaurants in India?** For common restaurant services, the applicable rate is generally 5% without ITC, subject to the applicable GST rules and exceptions. **Is GST charged on restaurant food?** Restaurant services can be subject to GST. The applicable treatment depends on the nature of the supply and applicable GST provisions. **Can restaurants claim ITC?** Restaurants using the 5% rate generally cannot claim ITC. Certain specified hotel-premises restaurant services under the 18% rate can have ITC eligibility. **Is GST applicable to restaurant bills?** Where the restaurant service is taxable, the applicable GST needs to be included according to the relevant GST rules. **Simplify Your Restaurant Menu & Ordering With QRTableMenu Today!**