GST Rate on Restaurant Services: 5%

SAC 996331 · 2.5% CGST + 2.5% SGST intra-state, or 5% IGST interstate.

Standalone restaurants charge 5% GST without input tax credit under SAC 996331. Restaurants inside hotels with room tariffs above ₹7,500 charge 18% with credit — the venue, not the food, decides the rate.

Worked example at 5%

Taxable value: ₹10,000
CGST (2.5%): ₹250.00
SGST (2.5%): ₹250.00
Invoice total: ₹10,500.00

Interstate, the same sale shows a single IGST line of ₹500.00. Try your own numbers in the GST calculator.

Classification

Restaurant Services is a service classified under SAC 996331 — see the full classification page for the official description, parent and related codes, and digit-length rules. Rates follow GST Council notifications and can change; the rate shown here is the one typically associated with this classification.

Also at 5% GST

Bedsheets HSN 6302 Coffee HSN 0901 Cotton Fabric HSN 5208 Edible Oil HSN 1512 Goods Transport (Freight) SAC 996511 Sugar HSN 1701 T-Shirts HSN 610910 Tea HSN 0902

Frequently asked questions

The concessional 5% rate is conditional on forgoing ITC — a policy trade-off. Hotel restaurants at 18% keep full credit.

For a sale within one state, the 5% splits equally into 2.5% CGST and 2.5% SGST. For an interstate sale it is charged as a single 5% IGST — the total tax is the same either way.

SAC code 996331. The code appears on every invoice line and flows into the GSTR-1 summary.

Related tools & guides

Never look this rate up again

Save Restaurant Services as a product in Invodo with its HSN code and rate — every invoice applies it automatically. Start free.

Start Free Trial Explore Features