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GST on Restaurant Services: Rates and Rules

GST rates on restaurant services including AC restaurants, non-AC, takeaway, home delivery, and composition scheme options.

GetYourCA Team
1 April 2025·Updated 9 April 20261 min read12.5K views
"GST Restaurant""Restaurant Tax""Food Services"

GST on Restaurant Services: Rates and Rules

GST Rates by Type#

AC Restaurants in Hotels (Room ₹7,500+)#

  • 18% GST
  • Input credit available

Non-AC Restaurants#

  • 18% GST
  • Input credit available

Restaurants in Hotels (Below ₹7,500)#

  • 18% (if AC)
  • 12% (non-AC)

Takeaway/Delivery#

  • 18% (restaurants with input credit)
  • 5% (composition)

Small Restaurants (Turnover < ₹75L)#

  • 5% composition option
  • No ITC

Important Points#

  • Service provided in premises
  • Food served for consumption
  • Includes catering

Exemptions#

  • Canteens in factories
  • Hostel mess (educational)
  • Food for staff (not for sale)

Conclusion#

Restaurant GST varies by type and size.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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