New GST for Food Business and Restaurants: Tax Rate on Dine-In and Takeaway
- 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.
Running a restaurant, café, cloud kitchen, or any kind of food business? Then knowing the correct 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.
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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 |
Type of Food Service
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
ITC Available
Type of Food Service
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
ITC Available
Type of Food Service
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
ITC Available
Type of Food Service
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
ITC Available
Type of Food Service
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
ITC Available
Type of Food Service
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
ITC Available
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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 |
Service Type
GST Rate
(After 22 Sept 2025)
ITC Available
Service Type
GST Rate
(After 22 Sept 2025)
ITC Available
Service Type
GST Rate
(After 22 Sept 2025)
ITC Available
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 |
Catering Service
GST Rate
ITC Available
Catering Service
GST Rate
ITC Available
Catering Service
GST Rate
ITC Available
Catering Service
GST Rate
ITC Available
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% |
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
Packaged Food Product
GST Rate (After 22 Sept 2025)
GST Rate (Before 22 Sept 2025)
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.
