GST resources
GST on Restaurant Bills
Most restaurants, cafés, dhabas and cloud kitchens charge 5% GST and cannot claim input credit. A restaurant inside a hotel that charges more than ₹7,500 a night for a room charges 18% and can claim credit. Here is how the rules work on a real bill.
The rates
| Type of outlet | GST rate | Input tax credit |
|---|---|---|
| Standalone restaurant, café, dhaba, sweet shop with seating, cloud kitchen, including takeaway and home delivery | 5% (2.5% CGST + 2.5% SGST) | Not allowed |
| Restaurant in "specified premises" — a hotel where a room was supplied above ₹7,500 a night in the previous year, or that has declared itself so | 18% | Allowed |
| Orders through food delivery apps | 5%, paid by the app (e-commerce operator), not the restaurant | Not allowed |
| Restaurant under the composition scheme | 5% of turnover paid by the restaurant; no GST on the bill | Not allowed |
Outdoor catering and event catering have their own entries; check the current notification for your case.
Why "without input credit" matters
At 5% the restaurant cannot claim back GST it pays on rent, kitchen equipment, packaging or repairs. Those taxes become part of its costs. When pricing the menu, treat GST on inputs as a cost line, not as something you will get back.
Food and drink sold as goods, such as a packaged bottle of water or a tub of ice cream sold over the counter without any service, may be a supply of goods taxed at that item's goods rate rather than restaurant service. Alcoholic drinks are outside GST; they carry state taxes and are billed separately.
Worked example
A café in Mysuru serves a table food worth ₹1,200. GST at 5% is ₹60: CGST ₹30 and SGST ₹30, bill total ₹1,260. The café paid ₹1,800 GST (18%) on a ₹10,000 refrigeration repair that month; it cannot claim it, so the repair costs ₹11,800.
The same meal at a hotel restaurant where rooms sell at ₹9,000 a night is billed at 18%: ₹216 tax, total ₹1,416. That hotel can claim credit on its inputs.
If the café receives a ₹600 order through a delivery app, the app charges the customer GST of ₹30 and pays it. The café does not charge GST on that order, but reports it in GSTR-1 as a supply through an e-commerce operator.
What goes on a restaurant bill
- Restaurant name, address and GSTIN
- FSSAI licence or registration number
- Bill number and date
- Items, quantities and rates, with the SAC for restaurant service
- Taxable value, CGST and SGST at 2.5% each (or 9% each at 18%)
- Service charge, only if the customer agrees to pay it; GST applies on it as part of the value
Common mistakes
- Claiming input credit while charging 5%
- Charging GST again on app orders the app has already taxed
- Adding service charge by default; consumer protection guidelines say it must be voluntary
- A composition restaurant showing GST on the bill
- Billing liquor on the same GST invoice as food
How it shows up in returns
Dine-in and takeaway sales go in GSTR-1 as B2C sales at 5%, and in GSTR-3B table 3.1. Orders through delivery apps are reported separately as supplies through an e-commerce operator under section 9(5), on which the operator pays the tax. With no input credit to claim, the restaurant's GSTR-3B usually shows its whole output tax as payable in cash.
How TripleBill helps
TripleBill's restaurant mode (Pro) bills dine-in, takeaway and delivery with GST at the rate you set on the menu, prints the service charge as its own line when you use it, and sends KOTs to the kitchen. It does not integrate with delivery apps yet, so record app orders separately.
This page is general information about GST in India, not tax advice. Rates, thresholds and rules change; confirm with the GST portal or a chartered accountant before acting.
Last reviewed and sources
Last reviewed: November 2026. Facts on this page were checked against:
- Notification No. 11/2017-Central Tax (Rate) as amended, including Notification No. 15/2025-Central Tax (Rate) (restaurant service and "specified premises")
- Notification No. 17/2021-Central Tax (Rate) (section 9(5) for restaurant services through e-commerce operators)
- CGST Rules, 2017, rule 7 (composition rate for restaurants)
- Central Consumer Protection Authority guidelines on service charge, July 2022
- FSSAI order on licence numbers on bills (2021)
Frequently asked questions
What is the GST rate on restaurant food?
5% without input credit for most restaurants, including takeaway and delivery. 18% with input credit for restaurants in hotels with room charges above ₹7,500 a night.
Is takeaway taxed differently from dine-in?
No. Takeaway and home delivery by the restaurant are restaurant service at the same rate.
Who pays GST on Swiggy and Zomato orders?
The delivery app, as the e-commerce operator, collects and pays GST on restaurant orders placed through it, since 1 January 2022.
Can a restaurant claim input tax credit?
Not at the 5% rate. Only restaurants in specified hotel premises, at 18%, can claim it.
Is service charge compulsory?
No. Consumer protection guidelines say it cannot be added by default; it is payable only if the customer agrees.
Can a restaurant opt for composition?
Yes, if eligible. It then pays 5% of turnover itself, issues a bill of supply without GST, and cannot claim input credit.
Does an FSSAI number have to be on the bill?
FSSAI requires food businesses to print their licence or registration number on cash memos and bills.
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