New GST on Catering Services: Overview
- 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.
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.
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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 |
Type of Catering Service
New GST Rate
Input Tax Credit (ITC)
Type of Catering Service
New GST Rate
Input Tax Credit (ITC)
Type of Catering Service
New GST Rate
Input Tax Credit (ITC)
Type of Catering Service
New GST Rate
Input Tax Credit (ITC)
Are Catering Services Taxable Under GST?
Yes, catering is considered a supply of service under 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
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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 |
Type of Catering Service
GST Rate
Input Tax Credit (ITC)
Type of Catering Service
GST Rate
Input Tax Credit (ITC)
Type of Catering Service
GST Rate
Input Tax Credit (ITC)
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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.
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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.
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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 .
Registration & Compliance
Catering service providers must:
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.
