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Particulars Regular Tax Payer Composite Tax Payer
Registration Limit Minimum Turnover   Rs 20 Lakhs Maximum Turnover Rs. 1.5 Cr
Territory of Business No restriction on supply Limited to Intra-State Supply
Input tax credit If GST output is 5% then No ITC allowed

If GST output is 18% then ITC is allowed

Restaurants cannot avail any ITC.
Compliance GSTR 1 & GSTR 3B GSTR 4
E commerce Can supply goods through e commerce Cannot supply goods through e commerce
Collection of taxes Collect taxes from customers – 5%/18% Cannot collect tax from customers

GST rates on restaurant services

Types of restaurants GST rate (Normal Scheme) GST Rate (Composition Scheme)
Standalone restaurants 5% without ITC 5% without ITC provided turnover for the whole FY does not exceeds 1.5 crore.
Standalone outdoor catering services 5% without ITC
Restaurants within hotels (where room tariff is less than Rs 7,500/-) 5% without ITC
Normal/composite outdoor catering within hotels (where room tariff is less than Rs 7,500/-) 5% without ITC
Restaurants within hotels (where room tariff is less than Rs 7,500/-) 12% with ITC
Restaurants within hotels (where room tariff is more than or equal to Rs 7,500) 18% with ITC
Normal/composite outdoor catering within hotels (where room tariff is more than or equal to Rs 7,500/-) 18% with ITC
Restaurant serving alcohol 18% with ITC

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Anubhav has over 5 years of professional experience in handling Audit & Assurance of various entities, Direct & Indirect Tax Advisory services, Project financing, Litigation Services, RERA, Preparation and Finalization of Income Tax returns, Monthly Compliance which includes GST, TDS and oth View Full Profile

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  1. Deepanshu says:

    we have a restraunt in which we charge 5% gst , but we also supply mrp items like Pespi and soft drink , also a compbination of food thali , can any one suggest the impact of gst on it ??

  2. vikram says:

    My client is having restaurant, lodging and bar..
    he is under regular taxpayer scheme in gst charging 5% on restaurant food..whether ITC any equipments purchased for restaurant and other services availed like my professional fees etc be availed by him?

    1. Kuwar Sain says:

      Hi, I have bakery shop.
      There are some exempt products as well like Bread Which attract Nil rate of Tax HSN 1905
      So if i opt for restaurant service @5%, Then Whether such exempt product also become taxable @5% or still remains exempt?

      Means i want to ask whether such 5% is flat rate only for taxable supplies or taxables as well as exempt Supplies?

      1. Kaushik Agrawal says:

        No, Exempt product such as bread, Raw milk will attratct 0% gst rate. And 5% rate is for only taxable supplies not for exempt supplies.
        For eg. If you are selling Paneer, ice cream then you will we liable for 5% GST and if you are selling raw milk, curd then there will be 0% gst.

  3. R K RAJPUT says:

    in a case where restaurant is having regular gstin, and charging 5% gst on sales, taking no itc inputs. in this case GST-TCS collected by e-commerce operator Zomato etc. . This tcs amount is allowed to avail by the said restaurant who is in regular and 5% output system??? please advice.


      Yes the same can be claimed as it will be reflected in your cash ledger after filing TDS AND TCS CREDIT RECEIVED FORM.

      However If you are in composition Scheme you cannot supply through ecommerce operator, So no question of TCS comes here.

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May 2024