Food Delivery Services Under SAC Code 996331
Restaurant and food delivery services cover supplying cooked food and beverages through dine in, takeaway, home delivery and room service from restaurants, cafes and similar outlets. Operators prepare meals, pack orders and serve or deliver them to customers. Under GST, these restaurant and food services are classified under SAC 996331. This SAC code and its GST rate decide how much GST is charged on food bills. This supports daily eating out, home delivery and food service for families and offices.
Food Delivery Services GST Rate for SAC Code 996331
Restaurant and food delivery services under SAC 996331 are treated as restaurant services under GST. Earlier, different slabs for air conditioned and non air conditioned outlets and the later shift to a uniform rate caused several changes in how restaurants charged GST on food bills.
After the September 2025 rationalisation, most standard restaurant and catering services under these codes generally fall in the 5 percent slab without input tax credit where they qualify as stand alone restaurant style services. Certain event or input intensive catering models can attract 18 percent with input tax credit based on the latest rules and notifications.
The table below explains the current GST rate applicable to SAC code 996331 for typical services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996331 | Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food. | 5% without ITC | 5% without ITC | Standalone and ordinary restaurant services have been at 5% without ITC throughout, with 18% with ITC reserved only for specific, higher value categories (for example certain restaurant services combined with other supplies in specified conditions). GST 2.0 keeps the mainstream restaurant rate at 5% without ITC, so there is no change in the “headline” rate for this SAC. |
When issuing invoices for services under this SAC code, restaurants and caterers should clearly show the taxable value of food and service, the GST rate and the tax amount so that customers understand the bill. The same SAC code and rate treatment should be used in GSTR 1 and GSTR 3B for outward supplies to keep records clean and consistent.
Explore Other SAC Codes Under 9963
This SAC code is part of the accommodation, food and beverage services group 9963, which covers hotel stays, hostels and PGs, student residences, restaurant services, catering services and other related hospitality activities. Each six digit SAC within this group is meant to capture a specific type of stay or food service so that GST reporting becomes more accurate.
Below are the major related six-digit SAC codes under parent 9963
In day to day use, businesses should pick the SAC code that best matches the main nature of their hospitality service. If the focus is more on accommodation, restaurant food or event catering, another SAC within 9963 may be more suitable. Correct SAC selection and GST rate application help avoid future disputes, keep the input tax credit position clear and make GST records easier to explain during audits or departmental checks.
Conclusion
Restaurant and food delivery services under SAC 996331 cover dine in, takeaway, home delivery and room service of cooked food and beverages. These services now generally attract 5 percent GST without input tax credit for standard restaurant configurations and 18 percent with input tax credit in certain special models. Restaurant owners and aggregators should map their service type correctly, apply the right rate on every invoice and keep consistent reporting in GST returns. For platform based and bundled services, it is wise to review the latest GST guidance and seek expert advice.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What does SAC code 996331 cover in GST?
SAC 996331 covers services provided by restaurants, cafes and similar eating places. It includes dine in, takeaway, room service and home delivery of prepared food and beverages from such outlets.
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Does SAC 996331 include home food delivery and takeaway from restaurants?
Yes. When restaurants or cafes supply cooked food through takeaway counters, room service or home delivery, it is still restaurant service under SAC 996331. Food aggregators usually collect tax on such orders based on these rules.
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What is the GST rate on food delivery services under SAC 996331?
Most regular restaurant services for dine in, takeaway and delivery are taxed at 5% without ITC. Some special cases, such as certain liquor serving outlets, can attract 18% with ITC. The actual rate depends on conditions in the applicable notifications.
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Should room service food deliveries in hotels use SAC 996331?
Yes. When a hotel kitchen supplies food to guests in their rooms, that supply is typically classified as restaurant service under SAC 996331, even though the room itself is under accommodation codes. Bills sometimes show food and room lines separately with their own codes.
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Is ITC allowed on GST paid for SAC 996331 services?
When restaurants charge 5% GST, they are usually not allowed to claim input tax credit on food related inputs. Outlets that fall under 18% with ITC can claim credit subject to conditions. Customers generally cannot claim ITC on personal food bills.