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GST on a restaurant bill: is 5 percent right

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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

Notification 11/2017-Central Tax (Rate) as amended; Sec 32, CGST Act 2017

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.

Close

  1. Check the GSTIN on Search Taxpayer.
  2. Check the rate shown on the bill.
  3. If 18 percent, ask if it is in a hotel with room tariff above ₹7,500.
  4. Ask for a corrected bill if wrong.

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