# GST on a restaurant bill: how to check it's charged right

Source: https://spolvero.design/articles/gst-on-restaurant-bill/
Updated: 2026-09-29
Tool: https://spolvero.design/gst-calculator/

> Most restaurants in India charge 5% GST on food, shown as 2.5% CGST plus 2.5% SGST. A restaurant inside a hotel that charged more than ₹7,500 a night for any room in the previous year charges 18%, as 9% plus 9%. Check the bill by working out 5% or 18% of the food subtotal: ₹1,200 of food at 5% should carry ₹60 of GST.

A restaurant bill is the GST calculation most people see most often, and the one they are least sure about. The tax line is usually right. When it is wrong, it is wrong in one of four ways that take seconds to spot, once you know the rates.

## The two rates that cover almost every restaurant

**5%, for most restaurants.** Standalone restaurants, cafés, dhabas, takeaways, cloud kitchens and food ordered through a delivery app all charge 5%. On the bill it appears as two lines of 2.5% each: CGST to the Centre and SGST to the state.

**18%, for restaurants in pricier hotels.** A restaurant inside a hotel counts as being in "specified premises" if any room there was charged at more than ₹7,500 a night at any point in the previous financial year. Those restaurants charge 18%, as 9% CGST plus 9% SGST.

The rate follows the premises, not the food. The same biryani is 5% at a standalone restaurant and 18% in a hotel that qualifies. It does not depend on air conditioning, on whether you sit down, or on the size of the bill.

## Checking a bill in thirty seconds

Find the food subtotal, the figure before any tax, and multiply it by the rate.

| Food subtotal | Rate | CGST | SGST | Total GST | Bill |
| --- | --- | --- | --- | --- | --- |
| ₹1,200 | 5% | ₹30 | ₹30 | ₹60 | ₹1,260 |
| ₹2,500 | 5% | ₹62.50 | ₹62.50 | ₹125 | ₹2,625 |
| ₹4,000 | 18% | ₹360 | ₹360 | ₹720 | ₹4,720 |

Both halves should be equal, give or take a paisa, and should add up to the whole. If the GST on a ₹1,200 bill reads ₹216, it has been charged at 18%. That is right only in a hotel that qualifies.

If the menu prices already include tax, the bill should say so. To find the GST inside a total that includes it, divide rather than multiply. Our guide to [calculating GST](/articles/how-to-calculate-gst/) shows how.

## Four things that go wrong

1. **The wrong rate.** 18% at a standalone restaurant is the most common error. Ask which rate applies and why.
2. **GST on a service charge you did not agree to.** Under the Central Consumer Protection Authority's guidelines from July 2022, a restaurant cannot add a service charge by default, and cannot add one to the food bill and charge GST on the total. In March 2025 the Delhi High Court upheld those guidelines. A service charge is a tip. You can ask for it to be removed, and pay whatever you choose.
3. **GST from a restaurant that cannot charge it.** A small restaurant in the composition scheme pays a flat rate on its own turnover and is not allowed to collect GST from customers. Its bill should carry no GST line. If one appears, question it.
4. **Halves that do not match.** CGST and SGST should be equal. Two different numbers usually means a hand-edited bill or a misconfigured billing machine.

A proper tax bill also carries the restaurant's GSTIN. You can look the number up on the official GST portal to see whether the business is registered and whether it is a composition taxpayer.

## Hotel rooms, while you are there

Room tariffs have their own rates. Since 22 September 2025, a room charged at up to ₹7,500 a night carries 5% GST, and a room above ₹7,500 carries 18%. The rate follows the room's price per night, not the length of the stay.

## Alcohol is not in GST

Alcohol for drinking sits outside GST. States tax it separately, usually as VAT, which is why a bar section often has a different tax line from the food section. Do not expect the food rate to apply to it.

## Checking with a calculator

[GST Calculator](/gst-calculator/) takes the subtotal and a rate and shows CGST, SGST and the total in one tap. To check a bill where the tax is already inside the total, switch it to extract GST instead. It works offline, which helps at a table with no signal. At a desk, the [browser version](/tools/calculators/gst-calculator/) does the same.

If a restaurant will not correct a bill you believe is wrong, the National Consumer Helpline takes complaints on 1915. For the split between CGST, SGST and IGST more generally, see [which one goes on an invoice](/articles/cgst-sgst-igst-which-applies/).

## Questions

### What is the GST rate on a restaurant bill?

5% for most restaurants, cafés, takeaways and food delivery, split into 2.5% CGST and 2.5% SGST. Restaurants in hotels where any room was charged at more than ₹7,500 a night in the previous financial year charge 18%, split into 9% CGST and 9% SGST.

### How do I check the GST on my bill?

Find the food subtotal before tax, and multiply it by the rate. ₹1,200 of food at 5% carries ₹60 of GST: ₹30 CGST and ₹30 SGST, for ₹1,260. If the bill shows ₹216, it has been charged at 18%.

### Do I have to pay the service charge?

No. The Central Consumer Protection Authority's 2022 guidelines say a restaurant cannot add a service charge by default, and the Delhi High Court upheld them in March 2025. You can ask for it to be removed. It is a tip, and the amount is your choice.

### Why does my bill have no GST at all?

The restaurant may be in the composition scheme. A composition restaurant pays tax on its own turnover and is not allowed to charge GST to customers, so no GST line should appear. If a composition restaurant adds GST to your bill anyway, that is wrong.

### Is there GST on alcohol in a restaurant?

No. Alcohol for drinking is outside GST, and states tax it separately, usually as VAT. The bar items on a bill are often listed in a separate section with their own tax, which is why they do not follow the food rate.