GST services for restaurants.
Whether you run a dine-in outlet, a cloud kitchen or a catering business, your GST rate and input-credit position depend on exactly how you serve.
About GST for restaurants
Restaurants sit in one of the more nuanced corners of GST. A standalone restaurant is taxed at 5% without input tax credit, while a restaurant inside a hotel charging room tariffs above ₹7,500 a night is taxed at 18% with credit. Outdoor catering, cloud kitchens and delivery through aggregators each add their own wrinkle.
Because most restaurants cannot claim input credit at 5%, the GST you pay on rent, equipment and ingredients becomes a real cost, so getting registration, billing and the composition decision right materially affects your margins.
GST at a glance
- Standalone restaurants: 5%, no ITC
- Aggregator orders: tax collected by the platform
- Composition option for small outlets
- Monthly or quarterly GSTR filing
GST requirements for restaurants
- GST registration once turnover crosses the threshold (or voluntarily)
- Tax invoices with the correct 5% / 18% rate
- Proper SAC/HSN for food and beverage supplies
- Monthly or quarterly GSTR-1 and GSTR-3B
- Record-keeping of sales across dine-in, takeaway and delivery
- Reverse-charge tracking on certain supplies
Our GST services for restaurants
Common GST challenges
How we get you compliant
Consultation
A free call to understand your business and obligations.
Documents
We collect KYC and business proofs, fully online.
Registration
We obtain or update your GSTIN with the department.
Return filing
Monthly or quarterly returns prepared and filed.
Compliance
Ongoing tracking so you never miss a date.
Documents typically required
GST rates for restaurants
| Supply / scenario | GST |
|---|---|
| Standalone restaurant | 5% |
| Restaurant in hotel (tariff > ₹7,500) | 18% |
| Outdoor catering | 18% |
| Composition (eligible outlets) | 5% |
| Alcohol for human consumption | State excise (outside GST) |
Indicative rates, GST law and notifications change over time. Confirm your exact rate with an Expert before invoicing.
Restaurants GST questions
Is GST mandatory for restaurants?
If your aggregate turnover crosses the registration threshold (₹20 lakh for services in most states), GST registration is mandatory. Many smaller outlets also register voluntarily to bill corporate clients and use aggregator platforms.
What GST rate applies to my restaurant?
A standalone restaurant is generally taxed at 5% without input tax credit. A restaurant located in a hotel where any room tariff exceeds ₹7,500 per night is taxed at 18% with credit.
Can restaurants claim input tax credit (ITC)?
At the 5% rate, no, ITC is not available. Only restaurants taxed at 18% (premium-hotel restaurants) can claim input credit on their purchases.
What GST applies to Zomato and Swiggy orders?
For most restaurant supplies made through e-commerce food aggregators, the platform is liable to collect and pay GST on the restaurant’s behalf. You still report these supplies correctly in your returns.
Should I opt for the composition scheme?
Small restaurants can opt for composition and pay a flat 5% with simpler quarterly compliance, but cannot collect GST from customers or claim ITC. We help you weigh whether it suits your numbers.
What does outdoor catering attract?
Outdoor or event catering is generally taxed at 18%, distinct from the 5% on regular restaurant service.
Need GST help for your restaurant?
From the right rate to monthly filing, an Expert handles your restaurant’s GST end to end.