GST on Restaurant Food — Rates, Swiggy/Zomato & Composition (2026)
GST on restaurant food is 5% (no ITC) for most restaurants. Restaurants inside 5-star hotels and those charging a room tariff above ₹7,500/night attract 18% GST with ITC. Swiggy and Zomato collect GST as ECOs (e-commerce operators) since 2022.
Quick Reference
Regular Restaurant
5% (no ITC)
5-star/Hotel Restaurant
18% (ITC allowed)
Swiggy/Zomato
ECO collects GST
SAC Code
996331
Composition
5% on turnover
GST Rate
5% / 18%
SAC 996331–996334
5% GST — Regular Restaurants (Most Common)
Standalone restaurants, food courts, dhabas, and QSR chains charge 5% GST with no ITC. This applies regardless of AC or non-AC — the AC distinction was removed in 2018.
18% GST — Premium Hotels & Restaurants
If the restaurant is located within a hotel where the room tariff exceeds ₹7,500 per night, 18% GST applies and ITC is allowed. Restaurants in 5-star hotels always attract 18%.
Swiggy & Zomato — ECO GST Collection (2022)
Since 1 January 2022, Swiggy and Zomato are liable to collect and deposit GST (5%) directly for all restaurant orders on their platforms — the restaurant is not liable for that supply. The ECO files GSTR-8. This has reduced GST leakage from unregistered restaurants.
Composition Scheme for Restaurants
Restaurants with turnover up to ₹1.5 crore can opt for the Composition Scheme and pay a flat 5% tax on turnover (no ITC). They cannot charge GST on bills — the tax is absorbed by the business.
Packaged vs Cooked Food
Packaged and pre-cooked food sold in restaurants (branded packaged items) may attract different rates (12% or 18%). Freshly cooked food served for consumption attracts 5% under SAC 996331.
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No. ITC on food and beverages is specifically blocked under Section 17(5)(b) of the CGST Act, even if the expense is for business purposes like client entertainment.
Yes. Home delivery of food through a restaurant's own platform attracts 5% GST. Through Swiggy/Zomato, the ECO (platform) collects and deposits the 5% GST.
Yes. Take-away food from a restaurant is taxed at the same rate as dine-in — 5% for most restaurants.
Cloud kitchens are treated as restaurants — 5% GST applies. Orders through Swiggy/Zomato mean the ECO handles GST collection.
