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GST on Restaurant Food: 5% or 18%
Restaurant food is taxed as a service at 5% without input tax credit, whether the restaurant is AC or non-AC and whether you dine in, take away or order through an app. The 18% rate applies only to restaurants inside hotels that charge more than ₹7,500 per room per night.
Applicable GST Rate
Restaurant, takeaway and delivery food: 5% without ITC (AC or non-AC); 18% with ITC only in hotels charging over ₹7,500 per room per night
Restaurant Food GST rate chart
| Item or service | HSN / SAC | GST |
|---|---|---|
| Dine-in at a standalone restaurant, café or dhaba (AC or non-AC) | SAC 996331 | 5% (no ITC) |
| Takeaway and home delivery by the restaurant | SAC 996331 | 5% (no ITC) |
| Food ordered through Swiggy, Zomato or other apps | SAC 996331 | 5%, paid by the app |
| Restaurant in a hotel charging over ₹7,500 per room per night | SAC 996332 | 18% (with ITC) |
| Canteens and mess | SAC 996333 | 5% (no ITC) |
| Outdoor catering (18% if supplied by such a hotel) | SAC 996334 | 5% (no ITC) |
| Food sold by Indian Railways or IRCTC in trains and at stations | SAC 996335 | 5% |
| Delivery fee and platform fee charged by a food app | SAC 9968 / 9985 | 18% |
| Alcoholic drinks | 2203-2208 | Outside GST (state VAT) |
Why restaurants charge 5% and cannot claim ITC
Restaurant service is taxed at 5% on the condition that the restaurant does not claim input tax credit on its purchases. The AC or non-AC distinction was removed in November 2017, so the rate is the same everywhere outside specified hotels.
A restaurant inside a hotel where any room is priced above ₹7,500 per night ("specified premises") charges 18% and can claim ITC. A restaurant under the composition scheme pays 5% of turnover itself and cannot charge GST on its bills at all.
GST on a Swiggy or Zomato order
Food ordered through an app is restaurant service. The app collects 5% GST on the food and pays it to the government on the restaurant's behalf under Section 9(5). The app's own delivery fee and platform fee are separate services taxed at 18%.
Example: for ₹500 of food, a ₹40 delivery fee and a ₹10 platform fee, GST is ₹25 on the food, ₹7.20 on delivery and ₹1.80 on the platform fee, a total of ₹34.
Service charge and GST
Service charge is voluntary; a restaurant cannot add it automatically or make it a condition of service. If you agree to pay it, it is part of the bill value and GST applies to it at the same 5% or 18% rate.