--- title: "New GST on Cloud Kitchen 2026: 5% Rate on Cloud Kitchen & Online" description: "New GST rate on cloud kitchens in 2026 is 5% on food delivery and cloud kitchen orders. Get GST-ready with Busy and apply the correct rate on every invoice." canonical: "https://busy.in/gst-rates/cloud-kitchen/" author: "Vineet Goyal" published: "2025-05-19T15:24:01.000Z" category: "GST Rates" --- - Cloud kitchens, which operate without dine-in services, must comply with GST regulations if their turnover exceeds ₹20 lakh. - The GST rate for food supplied by cloud kitchens is 5%, and they cannot claim Input Tax Credit (ITC) under this rate. - Packaged or branded food items have a GST rate of either 5% or 18%, depending on the product, with ITC allowed at 18%. - Aggregator platforms like Swiggy and Zomato charge an 18% GST on their commissions. - When cloud kitchens sell through their own app or directly, they must register for GST and charge 5% if their turnover is above the threshold. # New GST on Cloud Kitchen Services and Food Delivery Operations With the rise of platforms like Swiggy, Zomato, and Uber Eats, cloud kitchens—also known as virtual or ghost kitchens—have transformed the food industry. But how does [GST (Goods and Services Tax)](https://busy.in/gst/) apply to this digital-first model? Whether you’re a cloud kitchen operator or an aggregator platform, understanding the **gst on cloud kitchen operations** is crucial for compliance and pricing. ## New GST Rate for Cloud Kitchen Services in India The Government of India is updating GST rates effective after **22 Sep 2025**. Below are the **expected new GST rates** for cloud kitchens and related services (no compensation cess). ## New GST Rate for Cloud Kitchen & Aggregator Services | Service Type | New GST Rate | HSN/SAC Code | | --- | --- | --- | | Food supplied by cloud kitchen (delivery/takeaway) | 5% (No ITC) | 9963 | | Packaged/branded food items | 5% or 18% (by product) | Varies | | Aggregator/platform commission (Swiggy, Zomato) | 18% | 9983 | Note: Restaurants supplied via e-commerce operators remain taxed at **5% (no ITC)**; the operator is liable to pay GST as deemed supplier. Platform commissions continue at **18%**. With 12% discontinued, products formerly at 12% generally move to **5%** under the rationalised slab. ## What Is a Cloud Kitchen? A cloud kitchen is a commercial kitchen that prepares food exclusively for delivery without offering dine-in services. Orders typically come via: - Food aggregator apps (Zomato, Swiggy) - Direct orders through the restaurant’s website or app - Third-party logistics or delivery partners Though the operations are virtual, GST registration and compliance are mandatory once the turnover threshold is exceeded. Live Demo Available Today ## Manage Online Orders Without Billing Delays Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## Old GST Rate for Cloud Kitchen Services ### (Old GST Rates – Applicable Until 21st September) | Service Type | GST Rate | HSN/SAC Code | | --- | --- | --- | | Food supplied by cloud kitchen (delivery/takeaway) | 5% | 9963 | | Packaged/branded food items | 12% or 18% | Varies | | Aggregator/platform commission (Swiggy, Zomato) | 18% | 9983 | **Get a Free Trial –** [Best Accounting Software For Small Business](https://busy.in/accounting-software/gst-accounting/) ## GST for Cloud Kitchen on Direct Orders If a cloud kitchen takes orders directly (via website, WhatsApp, or phone): - Must be [registered under GST](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) if turnover exceeds ₹20 lakh - Must charge 5% GST on food invoices - Cannot [claim Input Tax Credit](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) under 5% scheme ## Input Tax Credit (ITC) for Cloud Kitchens | GST Rate Type | Input Tax Credit Eligibility | | --- | --- | | Charging 5% GST | Not allowed | | Charging 18% GST (on packaged/bundled items) | Input Tax Credit (ITC) allowed | Most cloud kitchens opt for the 5% GST structure due to ease of compliance, but it disallows ITC on expenses like: - Raw materials and ingredients - Packaging supplies - Kitchen rentals and equipment - Marketing or advertising services **Explore a Free Demo of –** [Best Inventory Management Software For Small Business](https://busy.in/accounting-software/inventory-management/) Understanding the gst on cloud kitchen services helps food business owners, aggregators, and consumers make informed decisions. Whether you run a single-kitchen setup or multiple online brands, staying GST-compliant is key to scaling your food delivery operations smoothly. ## About the author **Vineet Goyal** I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand. ## Frequently asked questions ### What is the gst rate for cloud kitchens in India? The rate is **5%**, the same as for standard restaurants, **without ITC**. ### Do Swiggy and Zomato collect GST on behalf of cloud kitchens? Yes. As per new rules, **food aggregators collect 5% GST** from customers and pay it to the government directly. ### Can cloud kitchens claim input tax credit? **No**, if charging 5%. They lose **ITC eligibility** on expenses like packaging, raw materials, and rent. ### What if the cloud kitchen sells packaged goods? In that case, **12% or 18% GST** may apply depending on the product, and **ITC is allowed**. ### Is GST applicable if the kitchen sells through its own app? Yes. GST at **5%** applies if turnover exceeds **₹20 lakh annually**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)