For an ordinary restaurant bill, GST is commonly 5% without ITC. A ₹1,000 taxable bill therefore carries ₹50 GST and totals ₹1,050, before considering any lawful restaurant service charge already included in taxable value. Luxury-hotel assumptions, AC status and alcohol service do not by themselves determine the modern GST rate.
Use the rule effective on the transaction date
This guide is a decision aid. GST rates, exemptions, valuation rules and portal procedures can change through notifications and circulars. Match the exact supply, HSN or SAC, parties, place of supply and invoice date against the current official material.
Do not file from a headline rate alone. Preserve the notification, classification working and transaction documents supporting the treatment selected.
How to read the restaurant bill
Start with menu value, permitted discounts and any restaurant-imposed service charge or other consideration. Apply GST to the legally taxable value, then verify the tax split and final total.
Rate categories
Ordinary restaurant service commonly attracts 5% without ITC. A restaurant at specified premises may fall under an 18% with-ITC entry. Outdoor catering and banquet packages need their own analysis.
1 · IdentifyTransaction facts
2 · ClassifyHSN or SAC
3 · VerifyRate and date
4 · DocumentInvoice and return
Delivery and takeaway
Takeaway and many cloud-kitchen supplies can remain restaurant service. Where an electronic commerce operator is liable under the notified rule, the platform’s tax reporting must reconcile with the restaurant’s direct turnover.
Registration and invoicing
Apply the service-supplier turnover threshold, state rules and compulsory-registration provisions to actual facts. A registered restaurant should issue compliant invoices and display its GSTIN where required.
Owner return controls
Reconcile point-of-sale data, cash and online receipts, aggregator statements, advances, cancelled orders, credit notes, exempt/out-of-GST alcohol and output tax before filing.
Mistakes to avoid
Do not use AC status as the rate test, call service charge GST, claim restricted ITC under the 5% entry, omit aggregator reconciliation or assume every food item sold by a restaurant is a separate goods supply.
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Request GST supportFrequently asked questions
How much GST is charged on a ₹500 restaurant bill?
At 5%, the GST is ₹25 and the total is ₹525, assuming ₹500 is the taxable value.
Is GST charged on service charge?
A restaurant charge forming part of consideration can enter the GST taxable value.
Do restaurants file monthly returns?
Return frequency depends on registration status, scheme and turnover; monthly filing is not universal.
Is GSTIN required on the bill?
A registered supplier’s tax invoice must contain the prescribed particulars, including GSTIN.
Does delivery reduce GST?
No general lower delivery rate applies merely because food is delivered.
Can customers claim restaurant ITC?
ITC on food and beverages is generally blocked except in specified statutory situations.
