GST on restaurant food is simpler than it looks, but the rate depends on the type of establishment. Here is a plain-English overview. Always confirm specifics with your accountant.
Most standalone restaurants in India charge 5 percent GST on food, typically without input tax credit on that supply. This covers the large majority of cafes, QSRs and dine-in restaurants.
Restaurants located within hotels above a certain room tariff threshold can fall under an 18 percent rate, usually with input tax credit available. Because the rules turn on specifics, confirm your applicable rate with your accountant.
GST on a restaurant bill is generally split evenly into CGST and SGST. For a 5 percent rate, that is 2.5 percent each. You can check any bill with the free restaurant GST calculator.
Whether you can claim input tax credit depends on the rate you fall under. Many 5 percent restaurants cannot claim it on that supply, while some 18 percent establishments can. This affects pricing, so it is worth getting right with professional advice.
A compliant GST bill shows your GSTIN, the tax rate and the CGST and SGST amounts, and a valid invoice number. Restro OS generates compliant bills automatically, so you never work this out by hand.
This article is general information, not tax advice. Confirm your rates and obligations with a qualified accountant.
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Book my free demoMost standalone restaurants charge 5 percent GST on food, usually without input tax credit. Restaurants inside hotels above a certain room tariff can fall under 18 percent. Confirm your rate with your accountant.
It is generally split evenly into CGST and SGST. For 5 percent GST, that is 2.5 percent each.