GST
GST on a restaurant bill: is 5 percent right
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Facts
Most standalone restaurant services, including takeaway, are taxed at 5 percent (2.5 percent CGST plus 2.5 percent SGST) without input tax credit. Restaurants in hotels with room tariffs above ₹7,500 a night charge 18 percent. Rates were rationalised from 22 September 2025, check the latest rate notification.
Provisions and law
- Notification 11/2017-Central Tax (Rate) as amendedRates for restaurant and accommodation services
- Sec 32, CGST Act 2017An unregistered person cannot collect GST; a registered person can collect only as the law allows
Analysis
A dinner bill of ₹2,000 at a standalone restaurant should show ₹50 CGST and ₹50 SGST. If it shows 18 percent, ask whether the restaurant is in a specified premises hotel. Also check the GSTIN is active and regular, not composition.
Conclusion
- Check the GSTIN on Search Taxpayer.
- Check the rate shown on the bill.
- If 18 percent, ask if it is in a hotel with room tariff above ₹7,500.
- Ask for a corrected bill if wrong.
A Savvy can do this for you
Checking GST on a bill: GSTIN validity, rate and tax shown
Quote
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