GST Calculator for Indian Restaurants
About This Resource
GST for Indian restaurants is uniquely confusing — the rate depends on whether you're AC or non-AC (a distinction that no longer matters under current rules, but many owners still get wrong), whether you're in a hotel with room tariff above ₹7,500, whether you serve alcohol (different treatment), and whether you're eligible for the composition scheme. This calculator takes your specific situation — restaurant type, turnover, location, alcohol service — and tells you exactly which GST rate applies (5% without ITC or 18% with ITC), whether the composition scheme saves you money, your monthly/quarterly filing obligations, and your estimated annual GST liability. Includes an input tax credit (ITC) comparison tab that shows when 18% with ITC is actually cheaper than 5% without ITC (hint: it depends on your input costs).
What's Included
Who Is This For?
Restaurant owners, accountants, and CAs managing GST compliance for food businesses in India. Especially useful for new restaurants choosing between regular and composition scheme.
Quick Start Guide
- 1Enter your restaurant type, turnover, and location in the setup tab
- 2Input your monthly revenue and major expense categories
- 3Review the auto-calculated GST liability and filing schedule
- 4Use the ITC comparison tab to determine the most tax-efficient rate option
The Resource
Current GST Rates for Restaurants
| Restaurant Type | GST Rate | Input Tax Credit (ITC) | Notes |
|---|---|---|---|
| All standalone restaurants (AC & non-AC) | 5% | NOT available | Most common category — covers 95% of restaurants |
| Restaurants in hotels (room tariff ≤ ₹7,500) | 5% | NOT available | Treated same as standalone restaurants |
| Restaurants in hotels (room tariff > ₹7,500) | 18% | Available | Only this category gets ITC — calculate if it's actually beneficial |
| Outdoor catering services | 5% | NOT available | Reduced from 18% in 2019 |
| Cloud kitchens / delivery-only | 5% | NOT available | Same as restaurant dining |
| Takeaway food items (packaged) | 5% or 12% | Varies | Depends on whether it qualifies as "restaurant service" or "food product" |
Composition Scheme Comparison
| Parameter | Regular Scheme | Composition Scheme |
|---|---|---|
| Eligibility | Any turnover | Turnover up to ₹1.5 crores |
| Tax rate | 5% on billing amount | 1% of turnover (restaurants) |
| ITC | Not available (at 5%) | Not available |
| Filing frequency | Monthly GSTR-1 & GSTR-3B | Quarterly CMP-08 + Annual GSTR-4 |
| Invoice type | Regular tax invoice with GST breakup | Bill of supply (cannot charge GST to customer) |
| Interstate sales | Allowed | NOT allowed |
| Best for | Restaurants with high compliance capacity | Small restaurants wanting simple compliance |
Monthly GST Calculation Steps
- 1Calculate total food revenue from POS: dine-in + takeaway + delivery (exclude pure alcohol sales)
- 2For delivery: if Swiggy/Zomato collect GST on your behalf, do NOT double-charge — they remit the GST
- 3Apply 5% GST on total food revenue: GST Liability = Revenue × 5%
- 4Deduct any TDS already deposited by e-commerce platforms (1% TDS under Section 52)
- 5Net GST payable = GST liability − TDS credit
- 6File GSTR-3B by the 20th of the following month — late filing attracts ₹50/day penalty + 18% interest
Alcohol & GST
Alcohol is OUTSIDE GST — it's taxed under state excise duty. This means: 1. You must issue SEPARATE bills for food (with GST) and alcohol (without GST but with state taxes) 2. Your POS must be configured to split food and beverage billing 3. You cannot claim ITC on alcohol-related purchases 4. Service charges on alcohol are NOT subject to GST (since alcohol itself is outside GST) Get this wrong and you'll either overpay GST or face audit issues. Ensure your CA understands restaurant-specific GST rules.
Frequently Asked Questions
No. Since January 2022, all restaurants (AC and non-AC) pay 5% GST without input tax credit. The only exception is restaurants in hotels with room tariff above ₹7,500, which pay 18% with ITC. The calculator accounts for this.
The composition scheme (1% GST, no ITC, simplified filing) is available for turnover up to ₹1.5 crores. The calculator includes a comparison that shows which scheme results in lower total tax for your specific situation.
Alcohol is outside GST — it's taxed under state excise. However, if you serve food AND alcohol, you need to maintain separate billing. The calculator helps you split food vs. alcohol revenue for accurate GST calculation.
GST Calculator for Indian Restaurants
Excel Spreadsheet · 15 min setup
Download coming soon — document is being finalized.
Related Resources
View allFSSAI License & Compliance Checklist
Complete guide to FSSAI registration, licensing, and annual compliance for restaurants.
Restaurant P&L Statement Template
Monthly profit & loss spreadsheet with food cost %, labor %, and break-even analysis.
India Restaurant Fire Safety & Municipal Licenses
Complete checklist for fire NOC, trade license, and municipal permits for Indian restaurants.