GST on Restaurant Services: Rates and Rules#
GST Rates by Type#
AC Restaurants in Hotels (Room ₹7,500+)#
- 18% GST
- Input credit available
Non-AC Restaurants#
- 18% GST
- Input credit available
Restaurants in Hotels (Below ₹7,500)#
- 18% (if AC)
- 12% (non-AC)
Takeaway/Delivery#
- 18% (restaurants with input credit)
- 5% (composition)
Small Restaurants (Turnover < ₹75L)#
- 5% composition option
- No ITC
Important Points#
- Service provided in premises
- Food served for consumption
- Includes catering
Exemptions#
- Canteens in factories
- Hostel mess (educational)
- Food for staff (not for sale)
Conclusion#
Restaurant GST varies by type and size.