GST on Restaurant Bill: Calculator & Rates (5% vs 18%)
Check whether your restaurant bill has the right GST. Most restaurants charge 5% — here is how to verify the tax, the CGST/SGST split and the service charge.
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GST Rates on Restaurant Food
| Where you eat | GST | Input tax credit |
|---|---|---|
| Standalone restaurant, café, dhaba (AC or non-AC) | 5% | Not allowed |
| Takeaway and food delivery apps | 5% | Not allowed |
| Restaurant in a hotel with room tariff up to ₹7,500 | 5% | Not allowed |
| Restaurant in a hotel with any room above ₹7,500/night | 18% | Allowed |
| Outdoor catering | 5% | Not allowed |
The AC/non-AC difference was removed in 2017, so an AC restaurant charging 18% is wrong unless it is inside a premium hotel.
How the Bill Is Calculated
CGST = SGST = GST ÷ 2
Example: Food ₹2,000 at a standalone restaurant with no service charge: GST is ₹100 (CGST ₹50 + SGST ₹50), total ₹2,100. With a 10% service charge, the taxable value becomes ₹2,200, GST ₹110, total ₹2,310.
Service Charge Is Optional
Under consumer protection guidelines, restaurants cannot add service charge automatically or make it compulsory. If it appears on your bill you can ask for it to be removed. If you do pay it, GST applies on it as well.
Spotting a Wrong Bill
- GST should be shown as CGST + SGST (equal halves) for dine-in; IGST is unusual for a restaurant bill.
- A GSTIN must be printed on the bill. Restaurants under the composition scheme cannot charge GST at all.
- Packaged drinks with MRP should not be billed above the MRP.
Frequently Asked Questions
Is GST on restaurant food 5% or 18%?
5% for almost all restaurants, cafés, takeaway and food delivery. 18% applies only to restaurants inside hotels where a room is priced above ₹7,500 a night.
Can a composition-scheme restaurant charge GST?
No. Composition dealers pay tax from their own revenue and cannot collect GST from customers. Their bill should say “composition taxable person”.
Is GST charged on service charge?
Yes. If a service charge is paid it is part of the value of the service, so GST applies to it.
Is GST charged on alcohol in restaurants?
No. Alcoholic liquor for human consumption is outside GST; states charge VAT on it instead, which appears separately on the bill.