GST on Restaurant Bill Calculator (2026): 5% vs 18%, With Alcohol Split

Use this calculator to work out the GST on any restaurant bill in seconds. Enter the food amount, pick the venue type, and it applies the correct rate — 5% for most restaurants or 18% for restaurants inside luxury hotels — splits it into CGST and SGST, keeps alcohol out of GST (it is taxed under state excise, not GST), and can even work backwards from a bill total you have already paid.

How much GST is charged on a restaurant bill?

Most restaurants in India charge 5% GST on the food and beverage portion of the bill — made up of 2.5% CGST + 2.5% SGST — with no input tax credit. So on a food bill of ₹1,000 you pay ₹50 GST, for a total of ₹1,050. Restaurants located inside hotels where any room is tariffed above ₹7,500 a night ("specified premises") charge 18% GST (9% CGST + 9% SGST) and can claim input tax credit. Alcohol is not covered by GST at all — it is taxed separately under state excise/VAT — so on a mixed bill only the food is charged GST.

Is there a new GST rate on restaurants in 2026?

No — and that is good news for planning. The GST 2.0 reform that took effect in September 2025 collapsed the old multi-slab system into two main slabs (5% and 18%) and removed the 12% bracket, but the new GST rate on restaurant food in 2026 is still 5% for standalone restaurants and 18% for restaurants in specified hotel premises — unchanged from before. The reform reshuffled the rates on many goods; restaurant service stayed where it was. The figures in this calculator reflect the current 2026 position.

Restaurant GST rates 2026 (full table)

Restaurant service falls under SAC/HSN code 9963. The rate depends less on what you eat and more on where it is served. The September 2025 "GST 2.0" reform moved goods to a two-slab 5%/18% structure, but the core restaurant rates below were left unchanged.

How to calculate GST on a restaurant bill

The maths is simple: take the food and non-alcoholic total, multiply by the rate, and split it equally into CGST and SGST. Any alcohol is added afterwards with its own state tax, not GST. Here is how common bills work out at both rates:

With alcohol on the bill, GST applies only to the food. For example, a ₹1,000 food order at a standalone restaurant plus ₹800 of drinks carries ₹50 GST on the food (₹25 CGST + ₹25 SGST); the ₹800 is taxed under state excise instead, for a food-and-drinks total of ₹1,850 before that state tax. The calculator above does this instantly — and can also work backwards from a GST-inclusive total you have already paid.

5% or 18% — which rate applies to my restaurant?

For owners, the rate is set by your format and premises, not your menu:

• Standalone restaurant, dhaba, QSR, takeaway, food truck, cloud kitchen: 5% GST, no input tax credit. This is the vast majority of the trade.
• Restaurant inside a hotel where a room crossed ₹7,500/night in the previous financial year: 18% GST, with input tax credit. The whole restaurant is treated as "specified premises" for the year.
• Cloud kitchen: taxed as restaurant service at 5%; if you sell through Zomato/Swiggy the platform handles GST collection, and you must register from your first order.
• Outdoor catering you run yourself is 5%; catering executed inside specified premises is 18%.

There is also an opt-in route where certain premises can elect the 18%-with-ITC treatment — useful only if your input credits outweigh the higher output rate. Treat that as an advanced case to model with your CA; the calculator above computes the standard applicable rate.

If your restaurant is on the composition scheme

Small restaurants with turnover up to ₹1.5 crore (₹75 lakh in special-category states) can opt for the composition scheme and pay a flat 5% on turnover with much lighter filing — a quarterly CMP-08 and one annual return. The trade-offs: you cannot claim input tax credit, you cannot show GST separately on the bill or collect it from customers, and you cannot serve alcohol. Separately, a restaurant must register for GST once turnover crosses the ₹20 lakh threshold (₹10 lakh in special-category states).

Bakeries, sweet shops and ice-cream parlours

These formats trip people up because the rate follows what is actually being supplied:

• Bakery or sweet shop with a seating area: anything eaten in is restaurant service at 5%. Packaged items sold over the counter to take away are taxed as goods at their own HSN rate.
• Ice-cream parlours: because they serve already-manufactured ice cream rather than cooking a meal, the CBIC treats this as a supply of goods, not restaurant service — so it is 18% (with input tax credit), not 5%.

Frequently asked questions

Is GST applicable on restaurant food?

Yes. Restaurant service is taxable under GST at 5% for standalone restaurants (no input tax credit) or 18% for restaurants in specified hotel premises (with credit). Only alcoholic drinks are outside GST, taxed instead under state excise.

Can a restaurant charge GST from customers?

Yes, a GST-registered restaurant is legally required to charge GST on the food and beverage value and deposit it with the government. It must show its GSTIN and the CGST/SGST split on the bill. A restaurant under the composition scheme cannot show GST separately — it pays a small flat rate itself and cannot collect it from you.

Is GST charged on alcohol in a restaurant?

No. Alcoholic beverages for human consumption are constitutionally outside GST. They are taxed under each state's excise duty and VAT, which vary widely by state. On a bill with both food and drinks, GST (5% or 18%) applies only to the food and non-alcoholic items; the alcohol carries its own state tax.

Can a restaurant charge GST on the service charge?

Service charge is not a government tax — it is an optional charge the restaurant adds, and under 2022 CCPA guidelines it cannot be added automatically or made mandatory; you can ask for it to be removed. GST itself is levied on the value of the food and beverage supply. Service charge and GST are two different things, and you should never confuse the restaurant's service charge with the tax.

How much is GST on Zomato and Swiggy orders?

The food is taxed at 5%, the same as dine-in. Since 2022 the delivery platforms (as e-commerce operators) collect and remit that 5% themselves rather than the restaurant. The platform's own delivery/handling fee is a separate service taxed at 18%.

What is the HSN/SAC code for restaurant GST?

Restaurant and catering services are classified under SAC/HSN 9963 (accommodation, food and beverage services). Food sold as packaged goods rather than as a served meal is classified under its own goods HSN and taxed accordingly.

Did restaurant GST change in the 2025 GST 2.0 reform?

The September 2025 reform simplified the overall GST structure into two main slabs (5% and 18%) and rationalised rates on many goods, but the core restaurant service rates — 5% for standalone restaurants and 18% for specified premises — stayed the same. That is why a calculator built now is stable.

Is GST different for AC and non-AC restaurants?

No, not any more. The old rule that taxed air-conditioned restaurants at a higher rate was removed — standalone restaurants now pay a flat 5% whether or not they are air-conditioned. The only 5%-versus-18% split today is standalone restaurants (5%) versus restaurants in specified hotel premises (18%).

What is the GST registration limit for a restaurant?

A restaurant must register for GST once annual turnover crosses ₹20 lakh (₹10 lakh in special-category states). Below that, registration is voluntary. Restaurants with turnover up to ₹1.5 crore can instead opt for the composition scheme, paying a flat 5% on turnover with simpler filing but no input tax credit.

This page is a planning aid for restaurant operators and diners. GST rates are set by the GST Council and can change at a future meeting; the constants used here reflect the position as of 17 August 2026. This is not tax advice — confirm your exact liability, ITC eligibility and any opt-in election with a qualified chartered accountant.