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GSTInvoice

GST Rates

GST on Food Services & Restaurants (5% vs 18% — Latest Rates)

Food and restaurant services have one of the most nuanced GST structures in India. Standalone restaurants pay 5% GST without ITC. Hotel restaurants charge 18% with ITC. Raw and unprocessed food is 0%. Packaged branded food varies from 5% to 12%. Getting this wrong is one of the most common GST errors in the hospitality sector.

By Arjun Sharma · GST & Tax Compliance Specialist Reviewed for GST accuracy
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GST Rates for Different Food Categories

Food Category GST Rate SAC/HSN
Standalone restaurants (all types) 5% (no ITC) SAC 996331
Restaurants in 5-star / starred hotels (>₹7,500/night) 18% (with ITC) SAC 996331
Catering services 18% (with ITC) SAC 996334
Takeaway / delivery (standalone) 5% (no ITC) SAC 996333
Unprocessed vegetables, grains, milk 0% Various HSN
Packaged / branded snacks & food 12% Various HSN
Aerated drinks / soft drinks 28% + cess HSN 2202

Cloud Kitchens and Delivery Apps

Cloud kitchens (delivery-only food businesses) operate at 5% GST without ITC — same as standalone restaurants. When food is ordered through Swiggy or Zomato, the platform collects and deposits GST on behalf of the restaurant since January 2022 under the e-commerce GST provisions. The restaurant receives the sale value minus the platform's GST and commission. Cloud kitchen operators must still file GSTR-1 and GSTR-3B monthly, reporting the sales made through aggregators. Revenue from app-based orders must be reconciled with GSTR-2B entries from the aggregator.

Example

A Chennai cloud kitchen sells ₹50,000 worth of biryani in a month via Swiggy. GST at 5%: ₹2,500 (collected and deposited by Swiggy). Net proceeds to kitchen: ₹47,500 minus Swiggy commission. The kitchen reports ₹50,000 turnover in GSTR-1 but the GST is already deposited by Swiggy.

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FAQs

What is the GST rate for restaurants?

5% GST without ITC for standalone restaurants. 18% with ITC for restaurants inside hotels where room tariff exceeds ₹7,500 per night.

Does GST apply on home-cooked or dabba food?

Tiffin/dabba services below ₹20 lakh turnover are exempt from GST registration. Above ₹20 lakh, 5% GST applies on home-cooked meal delivery services.

Is GST charged on Zomato or Swiggy orders?

Yes. Since January 2022, Swiggy and Zomato collect 5% GST on restaurant orders and deposit it directly. The restaurant does not collect GST — the platform does.

What GST applies to catering for weddings or events?

18% GST with ITC for all catering services (SAC 996334), regardless of the type of event.

Why Businesses Stop Using Excel for GST Invoices

Manual GST calculation mistakes

One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.

Slow invoice creation

Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.

Formatting breaks on every device

Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.

No easy sharing or payment link

Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.

Incorrect tax type (IGST vs CGST+SGST)

Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.

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Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.

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