GST on Restaurants and Food Delivery 2026 — Rates, Zomato/Swiggy Rules, Compliance

GST on restaurant services has undergone significant changes, especially with the GST 2.0 reforms effective September 22, 2025. The rules differ based on whether you dine in, order through an app, or run a cloud kitchen. Here is the complete guide for restaurant owners and food delivery businesses.

GST Rates for Restaurants — Quick Reference

Dine-In and Takeaway — 5% GST

Most restaurants charge 5% GST on food and beverages. This rate applies to:

• Standalone restaurants (AC and non-AC)
• Restaurants in hotels where room tariff is below ₹7,500/night
• Takeaway orders
• Outdoor catering services

No ITC: Restaurants paying 5% GST cannot claim Input Tax Credit on their purchases (raw materials, kitchen equipment, etc.). This is a trade-off for the lower rate.

Threshold: Restaurants with annual turnover below ₹20L are exempt from GST registration. Above ₹20L, registration is mandatory.

Hotel Restaurants — 18% GST

Restaurants located in hotels where the room tariff is ₹7,500 or more per night are classified as "specified premises" and charge 18% GST. These restaurants can claim ITC on their inputs.

Example: A restaurant in a 5-star hotel charges 18% GST on food. The hotel can claim ITC on kitchen equipment, raw materials, and other inputs.

Food Delivery Through Zomato and Swiggy — Section 9(5)

This is where the rules get interesting. Under Section 9(5) of the CGST Act, e-commerce operators (Zomato, Swiggy) are liable to pay GST on restaurant services supplied through their platforms.

What this means:

• The restaurant does not pay GST on orders placed through Zomato/Swiggy
• Zomato/Swiggy pays 5% GST on behalf of the restaurant
• The restaurant does not need to be GST-registered for these orders (if below ₹20L threshold)

For the restaurant:

• No GST liability on Zomato/Swiggy orders
• No ITC available on inputs for these orders
• Must still register for GST if total turnover (including direct orders) exceeds ₹20L

Delivery Fees — 18% GST from September 22, 2025

The 56th GST Council meeting (July 2025) recommended 18% GST on local delivery services provided by e-commerce operators. This took effect from September 22, 2025.

Impact:

• Zomato/Swiggy delivery fees now attract 18% GST
• This is separate from the 5% GST on food
• The delivery fee GST is paid by the platform, not the restaurant

Example (post September 22, 2025):

• Food order: ₹500 + 5% GST = ₹525
• Delivery fee: ₹50 + 18% GST = ₹59
• Total customer pays: ₹584

Cloud Kitchens

Cloud kitchens (delivery-only restaurants with no dine-in) are treated the same as regular restaurants:

• 5% GST on food orders
• If orders are through Zomato/Swiggy, Section 9(5) applies — platform pays GST
• If orders are through own website/app, the cloud kitchen pays 5% GST

GST Registration for Restaurants

Note: If you supply through Zomato/Swiggy only and your direct turnover is below ₹20L, you may not need GST registration. However, if you have any direct orders (own website, phone orders), the total turnover determines registration requirement.

GST Returns for Restaurants

Registered restaurants file:

• GSTR-1: Monthly (11th) or quarterly (QRMP scheme)
• GSTR-3B: Monthly (20th) or quarterly
• GSTR-9: Annual return (December 31)

Restaurants under the composition scheme file GSTR-4 annually.

Composition Scheme for Restaurants

Restaurants with annual turnover up to ₹1.5 crore can opt for the composition scheme:

• Pay 5% GST (same as regular rate, but as a flat percentage of turnover)
• No ITC
• Simplified quarterly filing (CMP-08)
• Cannot supply inter-state

Benefit: Reduced compliance burden. The tax rate is the same, but filing is simpler.

Input Tax Credit — What Restaurants Can and Cannot Claim

5% GST restaurants (no ITC):

• Cannot claim ITC on raw materials, kitchen equipment, furniture, etc.
• This is the trade-off for the lower 5% rate

18% GST restaurants (with ITC):

• Can claim ITC on raw materials, kitchen equipment, furniture, renovation
• Cannot claim ITC on food and beverages for personal consumption

Frequently Asked Questions

Does a small dhaba or street food stall need GST registration?

No. If annual turnover is below ₹20L, GST registration is not required. Most small dhabas and street food vendors are below this threshold.

Can a restaurant charge different GST rates for dine-in and takeaway?

No. The GST rate is the same (5%) for both dine-in and takeaway for most restaurants. The rate depends on the restaurant type, not the mode of consumption.

Is GST applicable on packaged food sold at a restaurant?

Packaged food sold at a restaurant counter (like bottled water, packaged snacks) may attract different GST rates based on the product. Bottled water is 18%, packaged snacks vary by product.

How does a restaurant owner account for Zomato/Swiggy orders in GST returns?

Orders through Zomato/Swiggy under Section 9(5) are reported in GSTR-1 as "supplies made through e-commerce operators." The platform files GSTR-8 showing the TCS collected. Reconcile your GSTR-2B to verify.

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