GST on a Restaurant Bill: Is It 5% or 18%? How to Check
Short answer: Most standalone restaurants charge 5% GST on the food bill, without input tax credit, after the GST Council’s changes on 22 September 2025. Some restaurants inside high-priced hotels have charged 18%, and sources differ on whether that changed, so read the GST line on your bill. On a ₹2,000 food bill, 5% GST adds ₹100 (total ₹2,100) while 18% adds ₹360 (total ₹2,360).
The two rates you may see
| 5% GST | 18% GST | |
|---|---|---|
| Food bill | ₹2,000 | ₹2,000 |
| GST | ₹100 | ₹360 |
| Total | ₹2,100 | ₹2,360 |
The difference is ₹260 on a ₹2,000 bill. You can try other amounts with the GST calculator.
What changed on 22 September 2025
India’s GST moved to four rates: 0%, 5%, 18% and 40% (see our guide to the GST slabs). For restaurants, most sources report that services supplied by standalone restaurants and takeaways are taxed at a uniform 5% without input tax credit. Input tax credit means the restaurant cannot deduct the GST it paid on its own purchases, such as ingredients or rent, which is why the rate is lower.
Where it can still be 18%
Restaurants inside hotels with a high room tariff (above ₹7,500 a night, in the rules as widely described) have been charged 18% with input tax credit. Sources disagree on whether this treatment continues after 22 September 2025, and some describe hotel outdoor catering differently. If you eat in a premium hotel, do not assume. Check the rate printed on the bill, and check the current rate notification on the CBIC site.
How to read your bill
- Look for the GSTIN. A GST bill shows the restaurant’s 15-character GSTIN. If a restaurant is not registered, it cannot charge GST.
- Check the split. At 5% inside one state, the bill shows CGST 2.5% and SGST 2.5%. At 18% it shows 9% each.
- Check the base. GST should be calculated on the food and drink amount, as shown on the bill.
- Check any service charge. A service charge is not a government tax. Ask the restaurant about it, and check whether GST has been added on top of it.
Working backwards from a total
If you only know the total, remove the GST: base = total × 100 ÷ (100 + rate). A total of ₹2,100 at 5% gives a base of ₹2,000. A total of ₹2,360 at 18% gives ₹2,000. This is the same method used in our GST calculator when you choose "inclusive".
Three typical bills
| Food bill | GST at 5% | Total at 5% | GST at 18% | Total at 18% |
|---|---|---|---|---|
| ₹850 | ₹43 | ₹893 | ₹153 | ₹1,003 |
| ₹2,000 | ₹100 | ₹2,100 | ₹360 | ₹2,360 |
| ₹3,500 | ₹175 | ₹3,675 | ₹630 | ₹4,130 |
On a ₹3,500 dinner, the gap between the two rates is ₹455, so it is worth a quick look at the bill.
How to check a restaurant’s GSTIN
The GST Portal has a "Search Taxpayer" option that lets you look up a GSTIN and see the registered business name and status. If the name does not match the restaurant, or the GSTIN is not valid, ask the staff to explain before you pay.
If you think you were overcharged
Ask the restaurant to explain the rate. If you are not satisfied, keep the bill and raise a complaint with the GST helpline or the consumer forum. A wrong rate can mean you paid more tax than the law requires.
Keep reading
- GST Slab Rates Explained Simply: 0%, 5%, 18% and 40% — GST, 5 min read
- How Much Emergency Fund Do You Need? A Simple Formula — Money basics, 6 min read
- The 50-30-20 Budget Rule for India: How to Use It on Your Salary — Money basics, 6 min read
- CTC vs In-Hand Salary: Why Your Take-Home Is Less Than Your CTC — Salary and tax, 6 min read
Frequently asked questions
What is the GST on a restaurant bill?
Most standalone restaurants charge 5% without input tax credit. Some restaurants inside high-tariff hotels have charged 18%. Read the rate on your bill.
Is GST charged on top of the service charge?
Service charge is not a government tax, and sources do not agree on how GST applies to it. Check the invoice, and ask the restaurant if the treatment is unclear.
How much is the GST on a ₹1,000 food bill?
At 5% it is ₹50, and at 18% it is ₹180.
Why is the restaurant GST rate lower than 18%?
The 5% rate comes without input tax credit, so the restaurant cannot claim back the GST it paid on its inputs. The rate was set lower to balance that.
Sources: CBIC — GST rates for goods and services · PIB — GST reforms 2025: new rate structure · GST Portal