Is GST on restaurant food 5% or 18%?

Both rates exist. Standalone restaurants, including small and non-air-conditioned establishments, are generally billed at 5%. Air-conditioned and licensed-bar establishments, and restaurants located inside higher-tariff hotels, are billed at 18%. The rate follows the type of establishment, not the dish.

Is service charge the same as GST?

No. GST is a government tax. Service charge is a fee the restaurant adds voluntarily and is not a tax. Indian consumer guidance has held that service charge cannot be levied compulsorily, and you may ask for it to be removed. GST, by contrast, is not optional.

Is GST charged on food delivery orders?

Yes. Food ordered through delivery platforms is generally taxed at 5%. The platform typically collects and remits the tax, so your app receipt may present it differently from a dine-in bill.

Should GST be calculated before or after a discount?

GST applies to the amount actually charged, so a discount given on the bill should reduce the taxable value before GST is computed. If a bill shows the discount applied after the tax line, the tax has been calculated on a value you did not pay.

GST on restaurant bills

There is no single restaurant rate — it is 5% or 18%, and which one applies depends on the establishment, not on what you ordered.

This is the single most misunderstood thing about eating out in India, and it is why two bills for the same biryani can show different tax.

Which rate applies to you

Where you ate	Rate
Small or non-air-conditioned standalone restaurant, dhaba, local eatery	5%
Air-conditioned restaurant, or one with a licensed bar	18%
Restaurant inside a higher-tariff hotel	18%
Food ordered through a delivery app	5%

Note what is not on that list: the food itself. A plate of dal costs the same rate as a steak in the same restaurant. The tax follows the venue.

Checking your own bill

Take the food total before any tax, then apply the rate.

At 5% — a ₹1,200 food bill at a non-AC restaurant:

₹1,200 × 5% = ₹60, split as ₹30 CGST + ₹30 SGST. Total ₹1,260.

At 18% — the same ₹1,200 at an AC restaurant:

₹1,200 × 18% = ₹216, split as ₹108 CGST + ₹108 SGST. Total ₹1,416.

A restaurant is nearly always in the same state as you, so restaurant bills show CGST + SGST rather than IGST. An IGST line on a dine-in bill is unusual and worth questioning.

Check a 5% bill → Check an 18% bill →

Service charge is not a tax

This is where most overcharging happens, and it is worth being precise about.

GST is a government tax. Service charge is not. It is a fee the restaurant adds of its own accord, and Indian consumer guidance has held that it cannot be levied compulsorily — you may ask for it to be removed. Restaurants often print it directly above the GST lines, which makes it look like part of the tax block. It is not.

Two things to watch on the bill:

Service charge sitting inside the tax section. Placement does not make it a tax. If you did not want to pay it, it can be contested.
GST computed on top of the service charge. Whether the service charge belongs in the taxable value is contested, and practice varies between restaurants. If you had the service charge removed, the GST should be recomputed on the reduced amount rather than left as printed.

Discounts come first

GST applies to what you actually pay. If the restaurant gives you a ₹200 discount on a ₹1,200 bill, the tax should be calculated on ₹1,000, not ₹1,200.

At 5% that is ₹50 rather than ₹60. A small difference on one meal, but a bill that applies the discount after the tax line has charged you tax on money you never paid. It is worth a glance.

Signs a bill is wrong

18% at an obviously non-AC local restaurant. Possible if it holds a bar licence, but worth asking about.
A separate "VAT" line. VAT was replaced by GST in 2017. On a food bill today it should not appear. Alcohol is the exception — it stayed outside GST and is still taxed under state excise and VAT, so a bar bill can legitimately show both.
No GSTIN printed on the bill. A business collecting GST must display its registration number. If tax is being charged and no GSTIN appears anywhere, ask.
Tax charged twice — once on individual items and again on the total.

Frequently asked

Why did my food delivery order show a different rate from dining in?

Delivery through a platform is generally taxed at 5%, and the platform usually collects and remits it rather than the restaurant. The same kitchen can therefore produce a 5% receipt through an app and an 18% bill if you sit down in its air-conditioned dining room.

Is there GST on alcohol at a restaurant?

Alcohol for human consumption was deliberately left outside GST and remains under state excise and VAT. This is why a bill with drinks can show a GST block for the food and a separate VAT block for the alcohol. Both appearing together is not an error.

Can I claim GST on a business meal?

Input tax credit on food and beverage is restricted, and a client dinner is generally not claimable even with a GSTIN on the invoice. There are narrow exceptions where the supply is obligatory for an employer. Ask your accountant before assuming a restaurant bill is claimable.

Before you rely on this

This page is a plain-language reference, not the official schedule. Restaurant taxation involves conditions this page cannot fully capture, and the treatment of an individual establishment can turn on details of its registration. For a disputed bill or anything you intend to file, confirm against the current CBIC notification or ask a qualified tax professional. Spotted something wrong? Tell us.

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