Archive · 19 Jun 2025
Understanding GST's Impact on Restaurant Bills
Restaurants use GST, a tax system.
The tax rate depends on the restaurant, like 5% for many.
It replaced older taxes.
Restaurants that use food delivery apps have the app handle the tax.
Restaurants show the tax clearly on bills to be trustworthy.
GST on restaurant bills is determined by the restaurant type and structure.
GST rates include 5%, 12%, and 18%, based on factors like ITC and hotel tariffs.
GST replaced service tax and VAT, creating a consolidated system.
GST collection varies; platforms like Zomato and Swiggy handle GST.
Restaurants focus on transparent billing to maintain customer trust.
- Who
- Restaurants and consumers
- What
- GST application on restaurant bills
- When
- Currently
- Where
- Restaurants
- Why
- To understand how tax impacts pricing, billing, and operations
Restaurants Without ITC
Restaurants With ITC
Input Tax Credit
Restaurants Without ITC
Bear the full burden of GST on inputs.
Restaurants With ITC
May invest more in premium ingredients, infrastructure, and better services with ITC.
- GST Slabs
- 5%, 12%, 18%
- ITC
- Input Tax Credit
- Composition Scheme
- 5% tax, no GST charge, turnover up to ₹1.5 crore annually
- Aggregator Platforms
- Collect and handle GST (e.g., Zomato, Swiggy)