Restaurant GST Rates

5% GST Rate

Restaurants (excluding those in hotels with room tariff ≥ ₹7,500) are subject to 5% GST without input tax credit (ITC).

Composition Scheme for Restaurants

Eligible restaurants can opt for composition scheme at 5% of turnover. This is suitable for small restaurants with turnover up to ₹1.5 crore.

Key Points

  • 5% GST on restaurant services (2.5% CGST + 2.5% SGST)
  • No ITC available even under regular scheme
  • Composition scheme offers simpler compliance
  • 18% GST on outdoor catering services

GST Rate Table

Service Type GST Rate ITC Availability
Restaurant (Non-AC) 5% No
Restaurant (AC) 5% No
Hotel Restaurant (≥ ₹7,500) 18% Yes
Outdoor Catering 18% Yes

Frequently Asked Questions

Is ITC available for restaurant services?

No, ITC is not available for restaurant services taxed at 5%, even under the regular scheme.

What is the difference between AC and non-AC restaurants?

There is no GST rate difference. Both AC and non-AC restaurants are taxed at 5% without ITC.

Can a restaurant opt for composition scheme?

Yes, if turnover is below ₹1.5 crore and other eligibility criteria are met. Tax rate remains 5%.

What is the GST rate for takeaway food?

Takeaway food from restaurants is also taxed at 5% without ITC, same as dine-in services.

Disclaimer

This calculator is for informational purposes only. GST rates are subject to change. Consult a GST professional for accurate compliance. GST24.in is not a CA firm.

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