Restaurant HSN Code: Classification for Food and Restaurant Services
Restaurant services cover supply of prepared food and beverages for consumption inside or outside the premises. Under GST, restaurant activities are treated as services and use specific service accounting codes instead of individual food HSN codes.
Restaurant HSN Table and GST Overview
| Product or Service Description | HSN / SAC Code | Product Type / Variant | Typical GST Rate |
|---|---|---|---|
| Services by restaurants, cafes and similar eating facilities | 996331 | Standalone restaurants, cafes and quick service outlets | 5% (generally without ITC) |
| Services by restaurants in hotels and similar accommodation | 996332 | Hotel restaurants and club dining facilities | 5% or higher based on notifications |
| Outdoor catering services | 996333 | Catering for events, weddings and corporate functions | 5% or 18% depending on scheme |
What Is the HSN Code for Restaurant Services
Most dine-in, takeaway and delivery services provided by restaurants are classified under restaurant service codes in the food and beverage service chapter. Instead of classifying each dish under separate food HSN codes, restaurants generally charge GST on the composite service value.
How Restaurant Food Is Classified under HSN Code
When food is supplied as part of restaurant service, the entire supply is treated as service, including both food and service components. However, if a restaurant separately sells packaged food items like sweets or namkeen, those particular sales may require goods HSN codes in addition to the restaurant service code.
GST on Restaurant Services and Input Tax Credit
Restaurant services are usually taxed at a concessional rate with restrictions on input tax credit. Many restaurant categories cannot claim ITC on inputs and services, while some outdoor catering or hotel restaurant services may be eligible as per current notifications. Correct HSN coding helps apply the right rate and credit rule to each outlet type.
I’m CA Shivani Kandalkar, a Chartered Accountant based in Mumbai with over 1 year of experience. My focus areas are Taxation and GSTR compliance, where I help individuals and businesses file accurate returns and avoid notices. With a background in M.Com and professional training as a Chartered Accountant, I aim to provide clear, practical guidance that simplifies tax laws and supports better financial decisions.
Frequently Asked Questions
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Do cloud kitchens use the same restaurant HSN code as dine-in restaurants?
Yes. Cloud kitchens that prepare and supply food without seating are also treated as restaurant-type services for GST classification.
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Is takeaway food taxed differently from dine-in orders?
Generally no. Dine-in, takeaway and delivery are treated similarly for rate purposes under most restaurant notifications.
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Does a sweet shop with a small seating area use restaurant HSN code?
The portion of supply where food is consumed on premises may use restaurant service code, while pure sweet and snack sales over the counter use goods HSN codes.
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Can restaurants claim ITC on rent and kitchen equipment?
In many concessional schemes ITC is blocked, but this can change by notification. Each restaurant must verify the current rules for its category before claiming credit.