Dining out or ordering food is a common part of modern life, but did you know that different types of restaurant services attract different GST rates? Whether you’re eating at a restaurant, taking food away, or ordering online via Zomato or Swiggy, the GST on restaurant meals can vary. In this blog, we break down the GST rates for dine-in, takeaway, and food delivery, helping customers and restaurant owners stay informed and compliant.
Yes, GST is applicable on restaurant meals, but the rate depends on:
Understanding these conditions is key to applying the correct GST rate.
Service Type | GST Rate | Conditions |
---|---|---|
Dine-in (Non-AC, No Alcohol) | 5% (No ITC) | Standalone restaurant with basic amenities |
Dine-in (AC/Alcohol Serving) | 5% (No ITC) | Air-conditioned or alcohol-serving restaurants |
Takeaway | 5% (No ITC) | Same rate as dine-in restaurants |
Online Delivery (Zomato, Swiggy) | 5% (Paid by aggregator) | Delivery platforms pay GST instead of restaurants |
Restaurants in Hotels (Room tariff > ₹7500) | 18% (With ITC) | Fine-dine or luxury restaurants in premium hotels |
Explore related sector-specific GST impacts such as GST on packaging materials used for takeaways.
Since January 1, 2022, food delivery platforms like Swiggy and Zomato have been responsible for collecting and paying 5% GST on behalf of the restaurant. Customers won’t see a change in prices, but the liability to pay tax has shifted from the restaurant to the aggregator.
This change aligns with digital compliance similar to those in digital marketing GST rules.
Service | SAC Code | GST Rate |
---|---|---|
Dine-in, Takeaway, Delivery | 996331 | 5% or 18% |
Use correct SAC codes, similar to those discussed in SAC Code listings.
Under the 5% GST slab, restaurants are not allowed to claim Input Tax Credit. This was introduced to simplify taxation and bring down meal prices. However, restaurants in hotels with room tariffs above ₹7500 per night are allowed to charge 18% GST with ITC benefits.
If you’re eligible, explore how to benefit from Input Tax Credit under GST.
For Customers:
For Restaurants:
The GST on restaurant meals is mostly standardized at 5%, ensuring simplicity for consumers and small to mid-sized eateries. However, luxury establishments within hotels charge 18% with ITC, making it essential for both customers and business owners to understand which bracket they fall into. Whether dining out, picking up food, or ordering online, knowing the GST structure helps in better transparency and compliance.
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