What GST rate applies to restaurant food?

Most Indian restaurants charge 5% GST (2.5% CGST + 2.5% SGST) on food and beverages. Restaurants inside hotels with room tariffs above ₹7,500/night attract 18%. These rates are subject to change — verify with your CA or gst.gov.in.

Is GST invoice mandatory for every restaurant order?

A GST-registered restaurant must issue a tax invoice for every taxable supply. For supplies under ₹200 to unregistered customers who do not request an invoice, a consolidated daily invoice is permitted under GST rules. For amounts above ₹200 or when the customer requests one, a full tax invoice is mandatory.

What is HSN code for restaurant food?

Restaurant services are classified under Service Accounting Code (SAC) 996331: 'Services provided by restaurants, cafés and similar eating facilities including takeaway services, room services and door delivery of food.' This SAC code should appear on every restaurant tax invoice.

How do I auto-generate GST invoices for my restaurant?

Restrofi automatically generates GST-compliant invoices for every order — showing GSTIN, sequential invoice number, itemised CGST and SGST, SAC code 996331, and total. Invoices can be shared via WhatsApp, downloaded as PDF, or printed with a thermal printer. No manual calculation is needed.

GST Invoicing for Restaurants India — Rules, Format & Software

GST Rates for Restaurants in India

The majority of Indian restaurants charge GST at 5% — split equally as 2.5% CGST and 2.5% SGST. This rate applies to standalone restaurants (both AC and non-AC) that are not attached to hotels with high room tariffs.

Restaurants operating inside hotels where the room tariff exceeds ₹7,500 per night attract 18% GST (9% CGST + 9% SGST). Outdoor catering (packaged events, banquets) also attracts 18% in most configurations.

Restaurants registered under the Composition Scheme pay a flat 5% on turnover and cannot claim input tax credit. They also cannot charge GST to customers — the tax is absorbed into the price.

Note: GST rates are subject to revision by the GST Council. Restaurant owners should verify current rates with their CA or the official GST portal (gst.gov.in) before applying them.

Required Fields on a Restaurant GST Invoice

A valid restaurant tax invoice must contain the following fields to be GST-compliant:

Restaurant name and address
GSTIN (Goods and Services Tax Identification Number)
Sequential invoice number (must restart from 1 each financial year)
Invoice date
Customer name and address (optional for B2C under ₹2.5 lakh)
Customer GSTIN (only if the customer is GST-registered and wants input credit)
Itemised list of food/services with SAC code 996331 (or applicable HSN for packed foods)
Taxable value per item
CGST rate and amount
SGST rate and amount (or IGST for inter-state supply)
Total invoice value

When to Issue a Tax Invoice

A GST-registered restaurant must issue a tax invoice for every taxable sale. For supplies below ₹200 to an unregistered customer who does not request an invoice, a consolidated invoice at the end of the day is permitted under GST rules.

In practice, most restaurants issue an invoice for every table regardless of amount — both for customer satisfaction and to avoid accounting complexity. Digital billing systems like Restrofi generate these automatically at the time of payment.

For takeaway and delivery orders, the invoice should be issued at the time the order is handed over. For dine-in, it is issued when the customer requests the bill.

Common GST Mistakes by Indian Restaurants

Applying the wrong GST rate is the most frequent error. Many restaurants confuse the 5% restaurant rate with the 18% hotel restaurant rate, or incorrectly apply 18% because they believe AC seating triggers the higher rate (it does not under current rules).

Non-sequential invoice numbering causes issues during GST audits. Manually managed billing books often skip numbers, restart mid-year, or duplicate numbers — all of which flag anomalies in GSTR filings.

Missing SAC codes on invoices are another common problem. Some billing software omits the SAC code 996331 for restaurant services, which can cause mismatches in GSTR-1 reconciliation.

Not retaining invoice records for the mandatory 6-year period (under GST record-keeping rules) is a compliance risk that manual paper billing makes especially difficult.

How to Automate GST Invoicing with Restrofi

Restrofi generates a GST-compliant invoice automatically for every order — whether placed via QR code, counter POS, or the billing dashboard. The invoice includes all required fields: GSTIN, sequential number, itemised CGST and SGST, SAC code, and total.

Invoices can be shared with customers instantly via WhatsApp or downloaded as PDF. For thermal printer-equipped outlets, Restrofi prints the invoice directly.

Sequential invoice numbers are managed automatically by Restrofi — they restart at the beginning of each financial year and never skip or duplicate. This removes a significant manual compliance burden.

All invoice data is stored in the Restrofi dashboard and can be exported for GSTR-1 filing, making reconciliation straightforward.

Sample GST Invoice Field List

Below is a reference list of the fields a complete restaurant GST invoice should contain:

Header: Restaurant name, logo, address, GSTIN, FSSAI number
Invoice: Invoice number (sequential), Invoice date, Order type (Dine-In / Takeaway / Delivery)
Table/Order: Table number or order reference
Items: Item name, Quantity, Unit price, SAC code (996331), Taxable amount
Taxes: CGST % and amount, SGST % and amount (or IGST for delivery to another state)
Totals: Sub-total (pre-tax), Total GST, Service charge (if applicable), Grand total
Payment: Payment mode (UPI / Card / Cash), Transaction reference
Footer: 'Tax invoice issued under GST Act 2017' declaration

Note: Verify your invoice format with a qualified CA before filing GSTR-1. Restrofi's generated invoices can be reviewed by your accountant to confirm compliance with your specific turnover slab and state.

GST Invoicing for Restaurants in India — Complete 2026 Guide