New GST on Catering Services: Overview
- The gst on catering services is generally 5% without ITC or 18% with ITC, depending on the applicable GST option and conditions.
- Outdoor catering services may attract 5% GST without ITC or 18% GST with ITC, subject to applicable conditions.
- Catering services are taxable under GST, with treatment varying based on the nature of supply and customer category.
- Catering provided to offices, schools, and other institutions may have different GST treatment depending on applicable GST rules.
- Catering businesses must comply with GST registration and invoicing requirements based on applicable turnover limits and GST provisions.
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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GST Rate on Catering Services in India
The applicable GST rates for catering services depend on the nature of service, location, and Input Tax Credit (ITC) option.
| Type of Catering Service | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | Input Tax Credit (ITC) |
|---|---|---|---|
| Regular/standalone catering services | 5% | 5% | No |
| Outdoor catering services | 5% | 5% | No |
| Catering services where 18% option is applicable | 18% | 18% | Yes |
| Catering under government contracts | 5% or 18% (depending on applicable conditions) | 5% or 18% (depending on applicable conditions) | Depends on applicable conditions |
Type of Catering Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Input Tax Credit (ITC)
Type of Catering Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Input Tax Credit (ITC)
Type of Catering Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Input Tax Credit (ITC)
Type of Catering Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
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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GST on Outdoor Catering Services
GST on outdoor catering services is generally 5% without Input Tax Credit (ITC). Suppliers opting for the applicable ITC benefit may charge 18% GST, subject to GST conditions.
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: GST treatment depends on the nature of catering arrangement and applicable GST provisions. Where outdoor catering provisions apply, 5% without ITC may apply.
- 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.
