---
title: "New GST for Food Business 2026: 0% to 18% Rate on Food Business"
description: "New GST rate for food businesses in 2026 is 0% to 18% on restaurants, packaged food and catering. Let Busy handle GST billing accurately on every transaction."
canonical: "https://busy.in/gst-rates/food-business/"
author: "Hitesh Aggarwal"
published: "2025-05-19T16:14:44.000Z"
category: "GST Rates"
---

-   The **new gst rate on restaurant food** is generally **5% without ITC** for standalone restaurant services, including dine-in and takeaway.
-   Restaurant services through Zomato and Swiggy generally attract **5% GST**, with GST on the restaurant service paid by the e-commerce operator.
-   Restaurant services at specified hotel premises may attract **18% GST with ITC**; other hotel restaurant services generally attract **5% without ITC**.
-   Outdoor catering generally attracts **5% GST without ITC**, while certain services at specified premises may attract **18% with ITC**.
-   Packaged food sold separately is taxed according to its HSN classification, with many processed food items attracting **5% GST** under the revised structure.

# New GST for Food Business and Restaurants: Tax Rate on Dine-In and Takeaway

Running a restaurant, café, cloud kitchen, or any kind of food business? Then knowing the correct  [GST](https://busy.in/gst/)  rates and tax structure is crucial for pricing, billing, and compliance. Whether it’s dine-in, takeaway, or home delivery, the GST rates differ based on how food is served and where it’s sold from.

Let’s explore the complete GST framework for the food business in India.

## **GST on Food Businesses & Restaurants in India**

Food businesses such as restaurants, cloud kitchens, food delivery services, and catering companies fall under specific GST categories depending on the type of service they provide.

The **gst on restaurant food** is generally **5% without Input Tax Credit (ITC)** for restaurant services outside specified premises. Outdoor catering at premises other than specified premises also generally attracts **5% GST without ITC**, while restaurant services and certain outdoor catering services at specified premises attract **18% GST with ITC** under the applicable GST provisions.

## New GST Rate for Food Businesses & Restaurants

The **restaurant gst rate** is generally **5% without ITC** for restaurant services outside specified premises, while specified-premises cases may attract **18% with ITC**.

| Type of Food Service | GST Rate (After 22 Sept 2025) | GST Rate (Before 22 Sept 2025) | ITC Available |
| --- | --- | --- | --- |
| Dine-in at restaurant | **5%** | **5%** | No |
| Takeaway from restaurant | **5%** | **5%** | No |
| Restaurant service through Zomato / Swiggy | **5%** | **5%** | No |
| Restaurant service at specified premises | **18%** | **18%** | Yes |
| Outdoor catering outside specified premises | **5%** | **5%** | No |
| Outdoor catering at specified premises | **18%** | **18%** | Yes |

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## GST on Dine-In, Takeaway & Room Service

| Service Type | GST Rate (After 22 Sept 2025) | ITC Available |
| --- | --- | --- |
| Dine-in orders | 5% | No |
| Takeaway orders | 5% | No |
| Room service (non-specified premises) | 5% | No |

The **gst on food in restaurant** is generally **5% without ITC** for dine-in, takeaway, and room service supplied outside specified premises.

## GST on Outdoor Catering

| Catering Service | GST Rate | ITC Available |
| --- | --- | --- |
| Wedding / event catering outside specified premises | **5%** | No |
| Wedding / event catering at specified premises | **18%** | Yes |
| Outdoor catering with renting of premises outside specified premises | **5%** | No |
| Outdoor catering with renting of premises at specified premises | **18%** | Yes |

For outdoor catering, the applicable GST rate depends on whether the service is supplied at specified premises. Services outside specified premises generally attract **5% GST without ITC**, while specified-premises cases attract **18% GST with ITC**.

## GST on Packaged Food Products

| Packaged Food Product | GST Rate (After 22 Sept 2025) | GST Rate (Before 22 Sept 2025) |
| --- | --- | --- |
| Namkeen, bhujia, mixture and similar snacks | **5%** | **12%** |
| Extruded / expanded savoury or salted snacks | **5%** | **12%** |
| Pastries, cakes, biscuits and other bakery wares | **5%** | **18%** |
| Plant-based milk drinks | **5%** | **18%** |
| Soya milk drinks | **5%** | **12%** |
| Fruit pulp / fruit juice-based drinks (non-carbonated) | **5%** | **12%** |
| Other non-alcoholic beverages under specified classifications | **40%** | **18%** |
| Sweetened / flavoured aerated beverages | **40%** | **28%** |
| Caffeinated beverages | **40%** | **28%** |

## **How to Calculate GST for Food Businesses**

GST for restaurants and food services is calculated based on the **value of the food bill or service charge and applicable GST rate**.

### **GST Calculation Formula**

**GST Amount = Bill Amount × GST Rate**

**Final Amount = Bill Amount + GST**

### **Example 1: Restaurant Dine-In Bill**

-   Food bill: **₹1,000**
-   GST rate: **5%**

**GST = ₹1,000 × 5% = ₹50**

**Total bill = ₹1,050**

### **Example 2: Outdoor Catering Outside Specified Premises**

-   Catering service charge: **₹50,000**
-   GST rate: **5% without ITC**

**GST = ₹50,000 × 5% = ₹2,500**

**Total invoice = ₹52,500**

If outdoor catering is supplied at **specified premises**, the applicable rate may be **18% GST with ITC** under the relevant GST provisions.

## About the author

**Hitesh Aggarwal**

As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.

## Frequently asked questions

### What is the GST rate for food businesses in India?

The **restaurant gst rate** is generally **5% without ITC** for restaurant and takeaway services outside specified premises. Restaurant services and outdoor catering at **specified premises** may attract **18% GST with ITC**, while outdoor catering outside specified premises generally attracts **5% GST without ITC**.

### Do food delivery platforms charge GST?

Yes. Restaurant services supplied through food delivery platforms such as Zomato and Swiggy generally attract **5% GST**. Under Section 9(5) of the CGST Act, the e-commerce operator is liable to pay GST on the restaurant service supplied through its platform.

### Can restaurants claim Input Tax Credit on ingredients?

No. Restaurants charging 5% GST cannot claim ITC on ingredients, packaging materials, rent, or utilities. Only businesses charging 18% GST, such as catering services, can claim ITC.

### What is the GST rate on packaged snacks sold by food businesses?

Packaged snacks such as namkeen, bhujia, mixtures, biscuits, cakes, and similar processed food products generally attract **5% GST** under the revised GST structure effective from 22 September 2025. The applicable rate should still be determined based on the specific product and HSN classification.

### How has GST impacted the restaurant industry?

GST has simplified the tax structure for food businesses, but the 5% GST slab without ITC increases operational costs for many restaurants, especially small and mid-sized establishments.

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