GST on Restaurant Food in India 2026: Dine-In, Zomato & Swiggy Rates Explained

Whether you're a restaurant owner wondering which GST rate applies to your business, or a customer confused about why your Swiggy bill shows a GST line, this guide covers everything about food and restaurant taxation in India.

What GST Rate Applies to Restaurant Food in India?

GST on restaurant food in India depends primarily on the type of establishment and the room tariff (for hotel restaurants), not on whether the seating is air-conditioned. Most standalone restaurants, takeaway counters, and food delivery orders are taxed at a flat 5% without Input Tax Credit, while premium hotel restaurants and outdoor catering are taxed at 18% with ITC available.

GST on food and restaurant services may seem straightforward — but the rules differ based on where you eat, whether the restaurant has air conditioning, whether you're ordering through a delivery platform, and whether you're at a hotel restaurant. Understanding these distinctions matters both for compliance and for consumer awareness.

GST Portal — restaurant services rate classification

What Is the Master Rule: Why Do Most Restaurants Pay 5% GST Without ITC?

The default GST rate for restaurant services in India is 5%, with no Input Tax Credit. This applies to:

• All standalone restaurants (whether AC or non-AC — this distinction was removed in 2018)
• Takeaway orders directly from any restaurant
• Food courts in malls
• Cloud kitchens / delivery-only kitchens
• Cafes and quick service restaurants (QSRs)

The "no ITC" clause is critical for restaurant operators: if you charge 5% GST, you cannot claim ITC on any of your inputs — ingredients, packaging materials, rent, utilities, kitchen equipment. This significantly impacts profitability for restaurants with high input costs.

Full GST Rate Structure for Food Services

Zomato and Swiggy: How GST Works on Food Delivery

This is where many consumers and even restaurant owners get confused. Since January 1, 2022, the GST framework for online food delivery platforms changed fundamentally.

The TCS Shift: Platforms Pay, Not Restaurants

Under Notification No. 17/2021, food delivery e-commerce operators (ECOs) like Swiggy and Zomato are now liable to collect and remit GST on behalf of the restaurants for orders placed through their platforms.

What this means:

• When you order food on Zomato or Swiggy, the platform collects 5% GST on the food value and remits it directly to the government
• The restaurant does not separately charge GST on delivery orders through platforms
• Your invoice from Zomato/Swiggy shows the 5% GST — paid on your behalf to the government

Delivery Charges: Separately Taxed at 18%

Starting September 22, 2025, delivery charges — the platform fee collected by Zomato and Swiggy from customers — now attract 18% GST.

This closes a previous loophole where platforms classified delivery fees as pass-through costs exempt from GST. The ruling leads to estimated additional costs of about Rs 2 per order for Zomato and Rs 2.6 per Swiggy order.

Your Zomato/Swiggy bill now looks like this:

For Restaurant Owners: GST Compliance Obligations

Registration Requirement

GST registration is mandatory if your restaurant's annual turnover exceeds Rs 20 lakh (Rs 10 lakh for special category states like those in the North-East). If you sell through Zomato or Swiggy, registration is mandatory regardless of turnover — online marketplace sellers have no turnover exemption.

What to Include in GSTR-1

Restaurant owners must report:

• All direct (dine-in, takeaway) sales invoices
• Exclude Zomato/Swiggy orders — the platform reports these in their own GSTR-8

GSTR-3B Reporting for Restaurants

• Report only direct sales in Table 3 (outward supplies)
• Do not include aggregator-collected sales (platform handles their own GSTR-8)
• ITC in Table 4: Cannot claim ITC if on 5% scheme
• Verify GSTR-2B: Available ITC from eligible vendor invoices only

ITC on Platform Commission

Here's one area restaurants CAN claim ITC: the GST charged by Zomato/Swiggy on their commission. The commission invoice from the platform shows 18% GST. This GST is an eligible ITC input service claim for the restaurant — even if they're on the 5% no-ITC scheme for food supply.

The Composition Scheme for Restaurants

Small restaurants with annual turnover up to Rs 1.5 crore can opt for the Composition Scheme:

The Composition Scheme suits very small, purely local restaurants. If you want to list on Zomato or Flipkart, you must opt out and register as a regular taxpayer.

Cloud Kitchens: Special Compliance Considerations

Cloud kitchens (delivery-only kitchens) operate almost entirely through aggregators like Zomato and Swiggy. Their GST compliance is therefore simpler in some ways:

Since nearly 100% of their sales are through platforms:

• They no longer need to pay GST on those orders (platform handles it)
• Their main GST responsibility lies in recording commission expenses and reconciling ITC
• Their GSTR-3B filings involve fewer outward supply entries but more focus on inward supply (commission bills from platforms)

Key obligations for cloud kitchens:

• File GSTR-1 monthly/quarterly (even if most sales are platform-mediated)
• Report commission invoices from platforms in GSTR-2B
• Claim ITC on packaging, operational supplies
• Reconcile monthly settlement reports from Zomato/Swiggy against GSTR-2B

GST on Different Food Scenarios: Quick Reference

Service Charge vs GST: An Important Distinction

Service charge is NOT a tax — it is a discretionary fee charged by restaurants. GST is a government-mandated tax. Many consumers confuse the two.

• Service charge: Optional; goes to the restaurant (often distributed among staff). The Ministry of Consumer Affairs has clarified it is not mandatory — you can refuse to pay.
• GST: Mandatory; remitted to the government. You cannot refuse.

From a GST perspective, service charge is included in the taxable value of the restaurant service — meaning 5% or 18% GST is computed on the food bill + service charge combined.

Common GST Mistakes by Restaurant Owners

External References

CBIC Notification 17/2021 — ECO TCS Rules — platform GST collection mandate

gst.gov.in — Restaurant Services GST Classification — official rate circulars

FSSAI Food Business Operator Registration — mandatory alongside GST for food businesses

Conclusion

GST on restaurant food is fundamentally simple — 5% for most restaurants, 18% for premium/catering — but the aggregator framework, delivery fee taxation, and compliance reporting create significant complexity for restaurant operators.

For restaurant owners:

• Apply 5% GST on direct sales (dine-in, takeaway)
• Don't double-report aggregator sales in your returns
• Claim ITC on platform commissions even on 5% scheme
• Register regardless of turnover if you're on Zomato/Swiggy

For consumers:

• Expect 5% GST on food, 18% on delivery charges when ordering online
• Service charge is separate and discretionary — GST is mandatory

Related: GST 2.0 Reforms India 2025 · GST for Amazon & Flipkart Sellers · GST on E-commerce India · How to File GSTR-3B

For a broader look at how GST 2.0 restructured rates across all sectors — not just food — see the GST 2.0 reforms overview. To calculate the exact CGST/SGST split on your restaurant bill (whether 5% or 18%), use the free GST calculator — no login required. And if you're wondering how India's GST compares to VAT systems in countries where your suppliers or customers are based, our GST vs VAT global comparison covers the key differences in rate structure and compliance burden.

GST on Restaurants — Frequently Asked Questions