Most restaurant and outdoor-catering supplies under the concessional entry attract 5% GST without ITC, but supplies at ‘specified premises’ attract 18% with ITC. The legal test is the current definition tied to hotel accommodation unit value, not a casual ‘standalone versus hotel’ label. Mixed event contracts must be classified from their actual bundle.
How this 2026 guide was prepared
The supplied draft was treated as a topic brief, not as legal authority. Outdated portal dates, overbroad thresholds, invented procedures and incorrect rate or format claims were corrected against official GST, CBIC, GST Council and India Code materials available on 2026-07-28.
Effective-date warning: GST rates, exemptions, portal screens and due dates can change. Confirm the live notification and return period before acting.
Classify the food-service supply
Outdoor catering, restaurant service, event catering, banquet packages and mere sale of food are not interchangeable labels. Identify who supplies, where service is provided, whether serving and event elements are bundled, and whether the premises meet the notified definition.
The 5% entry
Qualifying restaurant service and outdoor catering other than at specified premises generally attract 5% (2.5% CGST plus 2.5% SGST for intra-state supply) subject to the condition that input tax credit on goods and services used in the supply is not taken.
The 18% specified-premises entry
Food or catering supplied at specified premises generally attracts 18% with ITC subject to normal conditions. The specified-premises definition has changed over time; verify the operative notification and accommodation-unit value or declared tariff test for the transaction date rather than relying on an old room-price summary.
Registration and place of supply
Service suppliers generally test the ₹20 lakh or ₹10 lakh threshold, compulsory-registration provisions and current exceptions. Place of supply for restaurant and catering services is generally where the services are actually performed; event and immovable-property elements can require separate analysis.
Invoices, returns and records
State GSTIN, serial number and date, recipient details where required, SAC, description, taxable value, rate and CGST/SGST or IGST. Preserve contracts, venue details, menu, headcount, purchase records, e-invoices where applicable and ITC-reversal working.
E‑Way Bills and food transport
An E‑Way Bill concerns movement of goods, not the value of the catering service as a whole. If equipment, ingredients or prepared goods move, apply rule 138 to the consignment, documents, exemptions and state rules; do not state that every catering order over ₹50,000 automatically needs one.
Need a transaction-specific GST review?
Check registration, classification, value, place of supply, input credit, documents and return treatment before filing.
Request GST supportFrequently asked questions
What is the usual GST rate on outdoor catering?
Generally 5% without ITC outside specified premises, subject to the exact notification entry.
When can 18% apply?
Food or catering at specified premises and other differently classified bundled supplies may attract 18%.
Can a 5% caterer claim ITC?
The concessional entry is conditioned on non-availment of ITC on goods and services used in the supply.
Is every hotel below ₹7,500 automatically 5%?
Use the operative specified-premises definition and transaction facts; do not rely on a casual hotel label.
Is GST registration mandatory at ₹20 lakh?
That is the usual services threshold outside specified special-category states, but exceptions and compulsory cases must be checked.
Does every ₹50,000 event need an E‑Way Bill?
No. Apply the goods-consignment and movement rules, not the total service invoice alone.
What SAC is used?
Food-service supplies commonly fall under heading 9963, but the exact service and notification entry control.
