GST for restaurants and cafés

Most restaurants charge 5% GST and cannot claim input tax credit. A few, mainly those inside hotels with high room tariffs, charge 18% with credit. Here is how to tell which you are.

Which rate applies

Standalone restaurants, cafés, and takeaways charge 5% without input tax credit. Restaurants in hotels where any room’s declared tariff is above ₹7,500 a night charge 18% with input tax credit. Outdoor catering follows its own rules.

Small restaurants can choose the composition scheme at 5% of turnover; they then issue a bill of supply and cannot charge GST to customers.

Where HisaabKro fits

HisaabKro is a billing and accounting workspace, not a restaurant POS: there are no table or KOT screens. It suits restaurants that want proper books, purchases, and GST reports alongside their POS.

Run your GST billing in HisaabKro

Billing, purchases, stock, party ledgers, and GST reports on proper double-entry books. Free, in your browser.

Start free

Common questions

Free tools for this

More in GST billing by business