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Restaurant GST calculator
The restaurant GST calculator answers the 5% or 18% question and works out the exact CGST and SGST on any bill.
GST on a bill
- Invoice total
- ₹1,050.00
- Taxable value
- ₹1,000.00
- CGST 2.5%
- ₹25.00
- SGST 2.5%
- ₹25.00
- GST at 5%, in all
- ₹50.00
Most restaurants charge 5% GST without input tax credit. 18%, with credit, applies inside specified premises: a hotel where any room was supplied for more than ₹7,500 a night in the previous financial year. Alcohol is outside GST and taxed under state VAT. The tax is worked to the paisa and the odd paisa goes to CGST, as on CountStand’s bills. General information, not tax advice: confirm your rate with your CA.
- 5%on a standalone restaurant’s billwith no input tax credit
- 18%inside specified premiseswith input tax credit
- 2.5% + 2.5%CGST and SGST, on two linesnever one “GST 5%” line
- 1 paisaleft over goes to CGSTwhen the tax splits unevenly
01In detail
Is restaurant GST 5% or 18%?
Almost every standalone restaurant in India charges 5%: dine-in, takeaway, home delivery and cloud kitchens alike. The low rate comes with no input tax credit, so the GST the restaurant pays on rent, equipment and supplies stays a cost.
The 18% rate, with input tax credit, belongs to restaurants inside specified premises: a hotel where any room was supplied for more than ₹7,500 a night in the previous financial year. That restaurant charges more tax and recovers the GST on its inputs.
Alcohol is outside GST and is taxed under state VAT. That is why a bar bill can carry two tax regimes, and why many bars bill food and liquor separately.
What does GST look like on a ₹1,000 bill?
Food worth ₹1,000 at 5% carries ₹50 of GST, printed as CGST ₹25 and SGST ₹25 on two lines. The guest pays ₹1,050.
Add a 10% service charge and GST applies to that too: the taxable value becomes ₹1,100 and the tax ₹55. A service charge has to be optional, and a guest can ask for it to be removed.
Prices that already include GST work backwards. ₹1,050 including 5% is ₹1,000 of food and ₹50 of tax. Switch the calculator to “Incl. GST” to see it.
When the tax does not divide evenly, one paisa is left over. ₹101 at 5% is ₹5.05 of tax: CGST ₹2.53 and SGST ₹2.52. The calculator gives the odd paisa to CGST, as CountStand’s bills do.
Which GST returns does a restaurant file?
GSTR-1 lists the bills you issued, and GSTR-3B pays the tax. Both are monthly, or quarterly under the QRMP scheme if your turnover is up to ₹5 crore.
Delivery-app orders are the exception. Since 1 Jan 2022 the app collects and pays the 5% on orders placed through it, under section 9(5) of the CGST Act. Those sales still belong in your books, so they have to be reconciled.
The hard part is rarely the rate. It is the month end: every bill accounted for, no gaps in the serial numbers, and the file in the form the portal takes. CountStand numbers every bill in a consecutive series and gives you the month’s GSTR-1 file, named like GSTR1_092026.json.
02Questions
Questions about restaurant GST.
For almost every standalone restaurant it is 5%, without input tax credit. It is 18%, with credit, only inside specified premises: a hotel where any room was supplied for more than ₹7,500 a night in the previous financial year. If you are unsure which applies, ask your CA.
No. The 5% rate for restaurant service comes without input tax credit, so the GST on your rent, equipment and supplies stays a cost.
Equally, on a bill within your state: 5% is 2.5% CGST and 2.5% SGST, and 18% is 9% and 9%. The bill shows them as separate lines. When the tax is an odd number of paise, CountStand gives the extra paisa to CGST.
The rate stays the same. Since 1 Jan 2022 the app collects and pays the GST on orders placed through it, under section 9(5), and you still reconcile those sales in your books. CountStand does not take or reconcile delivery-app orders at launch.
You pay 5% of your turnover yourself and issue a bill of supply, with no tax lines and no GST charged to the guest. The scheme is open to restaurants that serve no alcohol, with turnover up to ₹1.5 crore in most states.
03Read next
- GST on restaurants, the guide5% or 18%, the returns, composition and the invoice, in one place.
- GST billing softwareCGST and SGST to the paisa on every bill, and the GSTR-1 file each month.
- Restaurant bill generatorLay out a bill with your GSTIN, FSSAI number and a Rule 46 serial.
- Commission calculatorThe 18% GST on the app’s fees, counted as the cost it is.
- Food cost calculatorThe food cost % of any dish, and the price that hits your target.
- Menu price calculatorA menu price from a plate cost and your target, and an app price.
- Break-even calculatorHow many covers a day before the month makes money.
Bills that are ready for the return.
CountStand splits CGST and SGST to the paisa on every bill and gives you the GSTR-1 file each month. Open now by invitation, and the first 30 days are free for one outlet.
From ₹2,999 a month per outlet, plus GST