Table of Contents

  • Introduction
  • GST on Restaurant Services: The Basics
  • Applicability of GST: What does it cover?
  • Expert analysis of GST Rules by Chartered Accountant in Delhi
  • The Power of Professional Insight: CA in Delhi
  • Conclusion


Today, we dive into a topic of utmost significance for restaurant owners and patrons alike – the ‘Goods and Services Tax (GST) on Restaurant Services’. Delve into the nitty-gritty of its rules, applicability, and practical implications as we guide you on this important journey.

GST On Restaurant Services: The Basics

Ever wondered who decides the taxes on your meal and how it’s calculated? That’s where GST steps in. Introduced in India in 2017, it encompasses all indirect taxes, making it a unified taxation system.
But can it be complicated? Absolutely!
A quick CA in Delhi can clarify this for you. Restaurants pay a tax of 5% on food and beverages, no matter what the type or size of the restaurant. Previously, it was 12%.

Applicability of GST: What does it cover?

GST not only applies to food and beverages but also to takeaway services and home delivery. But there are exceptions! For instance, if you consume any food or drink that is not alcohols based on premises attached to the restaurant, GST isn’t chargeable.
Still, have questions about the applicability in different scenarios? Consulting a Chartered Accountant in Delhi can give you a clear picture.

Expert Analysis of GST Rules by Chartered Accountant in Delhi

There are several intricacies to GST on Restaurant Services. Tuning into the knowledge of a seasoned Chartered Accountant in Delhi can enlighten you on these details. For instance, did you know if a restaurant operates within a hotel with a room tariff above INR 7500, the GST rate jumps to 18%? No more clouds of confusion, when you have the right expertise to guide you.

The Power of Professional Insight: CA in Delhi

Professional accountants can likely be your best bet in navigating through GST’s challenging labyrinth. A dedicated CA in Delhi with industry experience will go an extra mile in ensuring you fully comprehend the dynamics of GST. Keeping the hassles at bay, their authority and trust make it a smooth sail.

Rules of GST on Restaurant Services

There are several rules that restaurants must adhere to when accounting for their GST:

  • The GST rate on food and beverages (non-alcoholic) is typically a flat 5%.
  • A restaurant operating within the premises of a hotel with room rates exceeding INR 7500 per night attracts a GST rate of 18%.

What Is The Applicability?

The applicability of GST on restaurant services differs based on several factors:

  1. Location – The location of the restaurant can affect the GST rate due to the rules of the state in which it operates.
  2. Alcohol – If a restaurant serves alcoholic beverages, the applied GST will be higher.
  3. Air-conditioned or Not – GST is charged at a higher rate in air-conditioned restaurants than in non-air-conditioned ones.
    Always check with a trusted CA in Delhi to understand the specifics of applicability in your circumstances.

How Does This Affect You as a Restaurant Owner?

As a restaurant owner, it’s mandatory for you to understand GST’s rules and applicability. This understanding aids in accurate tax filings and can protect you from potential penalties.

Key GST Takeaway

Understanding the rules and applicability of GST on restaurant services can often be a complex task. But, as an experienced Chartered Accountant in Delhi, I assure you that it is crucial in maintaining a smooth-running restaurant business.

GST Rules: Do They Vary Across States?

As a CA in Delhi, I get this question a lot: Are GST rules identical throughout India? The answer is yes. The principal aim of GST was to maintain uniform tax rates across all states.

Exemption from GST: Any Exceptions?

There is always an exception to a rule, isn’t it? Similarly, restaurants without an input tax credit (ITC) enjoy a 5% GST rate. But restaurants located within hotels that charge room tariffs of Rs 7,500 or more per night, attract a GST rate of 18% with full ITC.

GST Payment: Who Bears the Burden?

Ultimately, the burden of GST falls upon the final consumer, that’s you and me. Restaurants just act as a medium to collect GST from customers and deposit it with the government.
To conclude, the GST on restaurant services is indeed a complex structure. But, as a Chartered Accountant based in Delhi with years of experience, I can assure you that once you get a knack of its workings, it becomes simple to comprehend.


In the end, understanding GST on Restaurant Services and its rules and applicability reduces administrative burdens and helps in making informed decisions. Reaching out to a professional Chartered Accountant in Delhi can streamline your aspirations and provide clarity in the complex world of taxation.