Restaurant GST Rates & Billing: AC vs Non-AC, Takeaway & Delivery
GST rates for restaurants in India aren't one-size-fits-all. The rate you charge depends on your setup, and getting it wrong can lead to compliance issues during audits.
GST Rates Based on Service Type
| Service Type | GST Rate |
|---|---|
| Non-AC restaurant (no alcohol) | 5% (no ITC) |
| AC restaurant or alcohol served | 5% (no ITC) |
| Takeaway & home delivery | 5% (no ITC) |
| Restaurant in hotel (room tariff ₹7,500+/day) | 18% (with ITC) |
Most standalone restaurants charge 5% GST regardless of AC or non-AC status since 2017. The key difference is only for restaurants inside premium hotels. For takeaway and delivery, the same 5% applies—there's no exemption. Make sure your billing software reflects the correct rate, and your invoices clearly mention the GST amount and your GSTIN.
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