Guide2026-04-25

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 TypeGST Rate
Non-AC restaurant (no alcohol)5% (no ITC)
AC restaurant or alcohol served5% (no ITC)
Takeaway & home delivery5% (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% appliesthere's no exemption. Make sure your billing software reflects the correct rate, and your invoices clearly mention the GST amount and your GSTIN.

Digital menus like DineCard (dinecard.in) can help streamline orders and integrate with billing systems, ensuring GST compliance from order to invoice at just 99/month.

Create a QR code menu for your restaurant in 5 minutes with DineCard.

Try Free