New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared
- The GST rate for dine-in, takeaway, and online food delivery is 5%, but luxury restaurants in hotels with high room tariffs charge 18% with ITC benefits.
- Food delivery platforms like Swiggy and Zomato are responsible for collecting and paying the 5% GST on orders since 2022.
- Restaurants charging 5% GST cannot claim Input Tax Credit, but those charging 18% can.
- Customers generally pay a 5% GST on their restaurant bills, which helps with budgeting due to transparent pricing.
- Restaurants must comply with GST filing and SAC coding, and coordinate with aggregators if they are listed online.
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.
Experience the power of Expert Accounting
Join our guided walkthrough to see how BUSY can transform your business operations.
Is GST Applicable on Restaurant Meals?
Yes, GST is applicable on restaurant meals, but the rate depends on:
- The type of service (dine-in, takeaway, delivery)
- Whether the restaurant has air conditioning
- Whether it serves alcohol
- Whether it’s part of a hotel with room tariffs above a threshold
Understanding these conditions is key to applying the correct GST rate.
New GST Rate on Restaurant Meals in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for restaurant and related meal services (no compensation cess).
New GST Rates for Restaurant Meals
| Service Type | New 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) | E-commerce operator liable under section 9(5) |
| Restaurants in Hotels (Room tariff > ₹7500) | 18% (With ITC) | Fine-dine or luxury restaurants in premium hotels |
Service Type
New GST Rate
Conditions
Service Type
New GST Rate
Conditions
Service Type
New GST Rate
Conditions
Service Type
New GST Rate
Conditions
Service Type
New GST Rate
Conditions
Old GST Rates for Restaurant Meals
(Old GST Rates – Applicable Until 21st September)
| 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 |
Service Type
GST Rate
Conditions
Service Type
GST Rate
Conditions
Service Type
GST Rate
Conditions
Service Type
GST Rate
Conditions
Service Type
GST Rate
Conditions
Explore related sector-specific GST impacts such as GST on packaging materials used for takeaways.
Who Collects and Pays GST on Delivery Orders?
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 .
HSN/SAC Code for Restaurant Services
| Service | SAC Code | GST Rate |
|---|---|---|
| Dine-in, Takeaway, Delivery | 996331 | 5% or 18% |
Service
SAC Code
GST Rate
Use correct SAC codes, similar to those discussed in SAC Code listings .
Input Tax Credit (ITC) for Restaurants
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 .
Impact on Customers and Restaurants
For Customers:
- You generally pay 5% GST on your bill for dine-in, takeaway, or delivery.
- Transparent pricing helps in better budgeting for meals.
For Restaurants:
- Must comply with SAC coding and GST filing.
- Cannot claim ITC under the 5% regime.
- Must coordinate with aggregators if listed online.
Conclusion
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.
Get a Free Trial – Best Accounting Software For Small Business
