--- title: "New GST on Catering Services 2026: 5% / 18% Rate on Outdoor" description: "New GST rate on catering services in 2026 is 5% on outdoor and 18% on specified premises catering. Stay GST-compliant with Busy and apply the correct rate autom" canonical: "https://busy.in/gst-rates/catering-services/" author: "Apurva Maheshwari" published: "2025-05-15T09:20:22.000Z" category: "GST Rates" --- - The new GST rates for catering services in India, effective after September 22, 2025, are 5% for regular and outdoor catering without input tax credit (ITC) and 18% for catering at specified premises with ITC. - Catering services are taxable under GST, with rates depending on the service location, the recipient, and whether ITC is claimed. - Outdoor catering services generally incur a 5% GST rate without ITC, but if ITC is claimed, the rate is 18%. - Catering services in schools and offices are usually taxed at 5% without ITC, but educational institutions providing food as part of education are exempt. - Catering businesses must register for GST if their annual turnover exceeds ₹20 lakh and comply with GST invoicing and filing requirements. # New GST on Catering Services: Overview Catering services play an important role in weddings, events, offices, and institutions. If you’re a catering business owner or hiring a caterer, understanding the **gst on catering services** is essential to avoid confusion over billing and taxation. This blog breaks down GST rates, conditions, and compliance in simple terms. ## New GST Rate on Catering Services in India The Government of India is updating GST rates effective after **22 Sep 2025**. Below are the **expected new GST rates** for catering services (no compensation cess). | Type of Catering Service | New GST Rate | Input Tax Credit (ITC) | | --- | --- | --- | | Regular/standalone catering (not at specified premises) | 5% | No | | Outdoor catering (not at specified premises) | 5% | No | | Catering at specified premises (hotel with declared room tariff ≥ ₹7,500/unit/night) | 18% | Yes | | Catering under government contracts | 5% or 18%\* | Depends on notification/scheme & whether at specified premises | ## Are Catering Services Taxable Under GST? Yes, catering is considered a supply of service under [**GST**](https://busy.in/gst/) . Whether the catering is provided indoors, outdoors, at a venue, or through a mess or canteen, it is taxable. The applicable **catering services gst rate** depends on: - Where the service is provided - Who is receiving the service - Whether the input tax credit (ITC) is claimed **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## Old GST Rate on Catering Services ### (Old GST Rates – Applicable Until 21st September) | Type of Catering Service | GST Rate | Input Tax Credit (ITC) | | --- | --- | --- | | Regular catering (with ITC) | 18% | Allowed | | Outdoor catering (without ITC) | 5% | Not allowed | | Catering under government contracts | 5% or 18% | Depends on conditions | **Explore a Free Demo of –** [**Best Inventory Management Software For Small Business**](https://busy.in/accounting-software/inventory-management/) Live Demo Available Today ## Manage Multiple MRP Of One Item Without Confusion Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST on Outdoor Catering Services **gst on outdoor catering services** is charged at 5% GST without input tax credit, unless the catering is provided by a registered restaurant with the facility to claim ITC. Outdoor catering includes: - Wedding events - Corporate parties - Religious or cultural events - Off-site food arrangements If the caterer does not claim ITC, they must charge 5% GST. If they do claim ITC, they are required to charge 18% GST. **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## Catering Services in Schools, Colleges, and Offices - **Educational institutions:** Exempt when food is provided to students and staff as part of education - **Office canteens:** Usually taxed at 5% without ITC - **Industrial mess facilities:** Same as office canteens — 5% without ITC So, institutional meal contracts are not completely exempt unless specified by GST notifications. **Get a Free Demo –** [**Best Billing and Invoicing Software**](https://busy.in/accounting-software/invoicing-and-gst-billing/) ## Billing Example If a caterer charges ₹1,00,000 for an outdoor event: - At 5% GST: ₹5,000 GST → Total = ₹1,05,000 - At 18% GST (with ITC): ₹18,000 GST → Total = ₹1,18,000 Choosing the rate depends on the business model and the ability to [**claim Input Tax Credit**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) . ## Registration & Compliance Catering service providers must: - Register under GST if annual turnover exceeds ₹20 lakh - Charge GST as per applicable rate - Issue GST-compliant invoices - File monthly returns ( [**GSTR-1**](https://busy.in/gst/guide-to-gstr-1/) and [**GSTR-3B**](https://busy.in/gst/a-guide-to-gstr-3b-what-is-gstr-3b/) ) ## Conclusion Whether you’re hiring a caterer or running a catering business, knowing the **catering services gst rate** is crucial. For most casual or outdoor events, GST is 5% without ITC, but registered businesses claiming input credits must charge 18%. Understanding when and how GST applies helps with better pricing and compliance. ## About the author **Apurva Maheshwari** I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant. ## Frequently asked questions ### What is the standard GST on catering services? Usually **5% without ITC** or **18% with ITC**, depending on the billing method. ### Is GST on outdoor catering services always 5%? Yes, if the service provider is not claiming ITC. If ITC is claimed, they must charge **18%**. ### What is the GST rate on catering services for government contracts? It can be either **5%** or **18%**, based on whether ITC is claimed and the contract type. ### Is GST applicable for food served in school canteens? Food served as part of educational services is exempt. However, private food contractors may attract GST. ### Can a caterer claim ITC? 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