GST on restaurant bills, explained.
Rates, delivery apps, composition scheme and service charge in plain English.
Updated November 2026. This is a general guide, not tax advice. Confirm your rates with your CA.
GST on restaurant food in India mostly comes down to one question: is your restaurant inside a hotel that charges more than ₹7,500 a night for a room? For most restaurants the answer is no, and the rate is 5% without input tax credit.
GST rates at a glance
| Type of outlet | GST rate | Input tax credit |
|---|---|---|
| Standalone restaurant, café, dhaba, cloud kitchen | 5% (2.5% CGST + 2.5% SGST) | Not allowed |
| Takeaway and home delivery from these outlets | 5% | Not allowed |
| Restaurant in a hotel with any room above ₹7,500 a night (specified premises) | 18% (9% CGST + 9% SGST) | Allowed |
| Outdoor catering (not at specified premises) | 5% | Not allowed |
| Restaurant under the composition scheme | 5% of turnover, paid by the restaurant | Not allowed |
| Alcoholic drinks | Outside GST; state VAT and excise apply | - |
Orders through Swiggy and Zomato
For food ordered through delivery apps, the app collects and pays the 5% GST to the government under section 9(5) of the CGST Act. Your restaurant does not charge GST again on those orders, but you still report them in your returns.
Composition scheme restaurants
Small restaurants with turnover up to ₹1.5 crore (₹75 lakh in special category states) can choose the composition scheme. They pay 5% of turnover but cannot charge GST on the bill or claim input tax credit, and they issue a bill of supply instead of a tax invoice.
Service charge
Under the Central Consumer Protection Authority guidelines of July 2022, a service charge cannot be added to the bill automatically or made compulsory. If a guest chooses to pay a service charge, GST applies to it at the same rate as the food.
What your bill must show
- Your GSTIN, name and address
- Invoice number and date
- Item-wise value, the GST rate, and CGST and SGST amounts
- Total amount payable
QPOS sets the GST rate per item, splits CGST and SGST on every bill, handles service charge and rounding, and gives you a GST report for your CA. See billing features.
Common questions
What is the GST rate on restaurant food in India?
5% (2.5% CGST + 2.5% SGST) without input tax credit for most restaurants. Restaurants in hotels with any room priced above ₹7,500 a night charge 18% with input tax credit.
Is GST charged on Swiggy and Zomato orders?
Yes, 5%, but the delivery app collects and pays it under section 9(5), so the restaurant does not charge it again.
Is service charge compulsory?
No. Under the CCPA guidelines of July 2022 it cannot be added by default or made compulsory. If a guest pays it voluntarily, GST applies to it.
Is GST charged on alcohol?
No. Alcoholic drinks for human consumption are outside GST; state VAT and excise apply instead.
More guides: all QPOS guides.
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