New GST on Cloud Kitchen Services and Food Delivery Operations
- GST on cloud kitchen services depends on the nature of food supply and applicable GST provisions.
- Cloud kitchens providing restaurant services generally attract 5% GST without Input Tax Credit, subject to applicable conditions.
- Cloud kitchens may need GST registration based on applicable turnover thresholds and GST rules.
- There is no separate HSN code for a cloud kitchen business. Food ingredients, packaging materials and other supplies are classified according to their respective HSN codes.
- Cloud kitchens should maintain GST-compliant invoices and records for food sales, purchases and applicable tax filings.
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) 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.
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GST Rate for Cloud Kitchen & Related Services: Old vs New
The applicable GST treatment for cloud kitchens and related services depends on the nature of supply and applicable GST classification.
| Service Type | SAC Code | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|---|
| Food supplied by cloud kitchen (delivery/takeaway) | 9963 | 5% (No ITC) | 5% (No ITC) |
| Packaged/branded food items | Depends on product classification | 5% or 18% (as applicable) | 12% or 18% (as applicable) |
| Aggregator/platform commission (Swiggy, Zomato) | 9983 | 18% | 18% |
Service Type
SAC Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Service Type
SAC Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Service Type
SAC Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Note: Food supplied through e-commerce operators remains taxable at the applicable restaurant service rate. For restaurant services supplied through e-commerce operators, the e-commerce operator is liable to pay GST as the deemed supplier under applicable provisions. Platform commission/services continue to attract GST based on their applicable SAC classification.
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.
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GST for Cloud Kitchen on Direct Orders
If a cloud kitchen takes orders directly (via website, WhatsApp, or phone):
- Must be registered under GST if turnover exceeds ₹20 lakh
- Must charge 5% GST on food invoices
- Cannot claim Input Tax Credit under 5% scheme
Input Tax Credit (ITC) for Cloud Kitchens
| GST Rate Scheme | Input Tax Credit Eligibility |
|---|---|
| 5% GST (restaurant service without ITC) | Not allowed |
| Other taxable supplies | Depends on the applicable GST rate, classification and GST conditions |
GST Rate Scheme
Input Tax Credit Eligibility
GST Rate Scheme
Input Tax Credit Eligibility
Most cloud kitchens opt for the 5% GST scheme for restaurant services, but this means ITC cannot be claimed on expenses such as:
- Raw materials and ingredients
- Packaging supplies
- Kitchen rentals and equipment
- Marketing or advertising services
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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.
