What is the GST rate on hotel restaurant services in 2026?

5% without ITC for non-specified premises. 18% with ITC for specified premises.

What is specified premises for hotel GST?

A hotel where any room exceeded ₹7,500 per day in the preceding financial year.

Is GST on hotel restaurants 5% or 18%?

5% for non-specified, 18% for specified premises.

Can hotel restaurants claim Input Tax Credit (ITC)?

Yes – at 18% GST. No – at 5% GST.

How is specified premises status determined for hotels?

Based on actual value of supply of accommodation in preceding financial year.

Can a hotel opt-in or opt-out of specified premises status?

Yes – declarations filed by 31 March of preceding year.

What is the GST rate on hotel rooms in 2026?

5% up to ₹7,500, 18% above ₹7,500.

What is the composition scheme rate for hotel restaurants?

5% GST on turnover up to ₹1.5 crore.

How to apportion ITC for hotels with mixed supplies?

Use Rule 42 for common credits.

What is the GST rate on banquet services in hotels?

18% at specified premises, 5% at non-specified premises.

What happens if I don't file GST returns as a hotel restaurant owner?

₹50 per day late fee plus 18% interest.

Can a hotel restaurant charge different GST rates for different customers?

No – rate is based on hotel status, not customer.

GST for Hotel Restaurant 2026 – Rates, Specified Premises & Complete Compliance Guide

Complete GST guide for hotel restaurants in India. Understand the 5% vs 18% rate structure based on specified premises, the ₹7,500 room tariff threshold, ITC rules, composition scheme, and compliance essentials for hoteliers.

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Quick Summary – GST for Hotel Restaurant

GST on Hotel Restaurant Services (2026): 5% (without ITC) for restaurants in hotels with room tariff ≤ ₹7,500 per night. 18% (with ITC) for restaurants in hotels classified as specified premises (room tariff > ₹7,500 in the preceding financial year).
Specified Premises Threshold: A hotel is considered "specified premises" if the value of supply of any accommodation unit exceeded ₹7,500 per day at any time in the preceding financial year. Status is annual, property-wise, and determined before the start of the financial year.
ITC Rules: No ITC at 5% GST. Full ITC available at 18% GST (specified premises). ITC must be apportioned under Rule 42 for common credits.
Registration Threshold: ₹20 lakh for hotel restaurant services (normal states); ₹10 lakh in special category states.
Composition Scheme: Available for standalone restaurants (5% on turnover) but not for hotels with room tariff above ₹7,500 or those serving alcohol.
Opt-In / Opt-Out: Hotels with room tariff ≤ ₹7,500 can voluntarily opt for specified premises status by filing a declaration. Opt-out is available for hotels that cross the threshold.

Takeaway: The GST rate for a hotel restaurant depends entirely on the hotel's specified premises status, which is based on room tariffs from the preceding financial year. Correct classification and annual declarations are critical for compliance.

1. Introduction – GST for Hotel Restaurants in India

The hotel and hospitality industry in India is a critical part of the economy, and the restaurant services provided within hotels are a significant revenue stream. For hoteliers and restaurant managers, Goods and Services Tax (GST) compliance is a complex but essential function. The tax treatment of a hotel restaurant differs significantly from that of a standalone restaurant, and getting it wrong can lead to substantial tax demands, interest, and penalties.

Under the GST framework, restaurant services are classified under SAC Code 9963. However, the applicable rate for a hotel restaurant depends on a unique concept called "specified premises". A hotel is considered a specified premises if the value of supply of any accommodation unit exceeded ₹7,500 per day at any time in the preceding financial year. If a hotel qualifies as specified premises, its restaurant services attract 18% GST with ITC. If not, the restaurant attracts 5% GST without ITC.

With the rollout of GST 2.0 (effective 22 September 2025), the government rationalised rates for hotel accommodation – rooms up to ₹7,500 now attract 5% GST without ITC (down from 12%), while rooms above ₹7,500 continue at 18% with ITC. The specified premises concept remains central to determining the restaurant GST rate.

This comprehensive guide covers GST rates on hotel restaurants, the specified premises threshold, registration thresholds, the composition scheme, Input Tax Credit rules, common mistakes and solutions, and FAQs targeting real user search queries.

Takeaway: Hotel restaurants attract 5% GST without ITC, unless the hotel is classified as specified premises (room tariff > ₹7,500), in which case 18% GST with ITC applies.

2. GST 2.0 Rates on Hotel Restaurant Services (2026)

Under GST 2.0, hotel restaurant services have a dual rate structure based on the specified premises status of the hotel. The table below summarises the applicable GST rates.

Supply Type	GST Rate	ITC Availability
Hotel Accommodation ≤ ₹7,500 per unit per day	5%	❌ No ITC
Hotel Accommodation > ₹7,500 per unit per day	18%	✅ Yes
Restaurant / Room Service – Non-Specified Premises	5%	❌ No ITC
Restaurant / Room Service – Specified Premises	18%	✅ Yes
Outdoor Catering / Banquet (Non-Specified Premises)	5%	❌ No ITC
Outdoor Catering / Banquet (Specified Premises)	18%	✅ Yes
Hall Rental Without Catering	18%	✅ Yes (subject to conditions)
Alcoholic Liquor for Human Consumption	Outside GST	State VAT / Excise applies
Packaged Goods Sold Independently	Applicable Goods Rate	Normal ITC rules

Key Changes Under GST 2.0 for Hotel Restaurants

✅ Hotel Accommodation ≤ ₹7,500: Reduced from 12% to 5% without ITC.
✅ Hotel Accommodation > ₹7,500: Remains at 18% with ITC.
✅ Restaurant Services: Rate depends on specified premises status (5% or 18%).
⚠️ Specified Premises Threshold: Based on value of supply in preceding financial year (not declared tariff).

Example – Hotel Restaurant Bill: A guest at a hotel with room tariff of ₹6,000 per night orders food worth ₹1,000. Restaurant GST @5% = ₹50. Total bill = ₹1,050. If the hotel's room tariff were ₹8,000 per night (specified premises), GST @18% = ₹180. Total bill = ₹1,180.

Takeaway: The GST rate for hotel restaurants (5% or 18%) is determined by the hotel's specified premises status, which depends on room tariffs from the preceding financial year.

3. Specified Premises – The ₹7,500 Threshold Explained

The concept of specified premises is central to determining the GST rate for hotel restaurants. A hotel is classified as specified premises if the value of supply of any accommodation unit exceeded ₹7,500 per day at any time in the preceding financial year.

Key Rules for Specified Premises

Annual Determination: Specified premises status is determined for the entire financial year based on the preceding financial year's room tariffs.
Property-Wise: The status applies to each hotel property separately, not to the entire chain.
Unit-Wise Test: The ₹7,500 threshold is tested for each accommodation unit (room) per day. If even one room exceeds ₹7,500 at any time in the preceding year, the entire property becomes specified premises for the next year.
Opt-In Option: Hotels with room tariffs ≤ ₹7,500 can voluntarily declare themselves as specified premises by filing a declaration before the start of the financial year.
Opt-Out Option: Hotels that cross the threshold can opt out of specified premises status by filing an opt-out declaration.
Declaration Timeline: Opt-in/opt-out declarations must be filed after 1 January of the preceding financial year but not later than 31 March of the preceding financial year.

Impact on Restaurant Services

📌 Specified Premises: Restaurant services, room service, and banquet services attract 18% GST with ITC.
📌 Non-Specified Premises: Restaurant services, room service, and banquet services attract 5% GST without ITC.
📌 Walk-In Customers: Even walk-in customers at a specified premises hotel restaurant are charged 18% GST.

Example – Specified Premises: A hotel charged ₹8,000 for one of its rooms on a peak date in FY 2024-25. For FY 2025-26, the entire hotel is classified as specified premises. All restaurant services in the hotel attract 18% GST with ITC, regardless of the room tariff on any given day.

Takeaway: Specified premises status is annual, property-wise, and based on the highest room tariff charged in the preceding financial year. It directly determines whether the hotel restaurant charges 5% or 18% GST.

4. GST Registration for Hotel Restaurants – Eligibility & Threshold

Under Section 22 of the CGST Act, 2017, registration is mandatory for hotel restaurants if the aggregate turnover exceeds the prescribed limit.

Business Type	Normal States	Special Category States
Hotel Restaurant Services	₹20 lakh	₹10 lakh
Hotel Accommodation Services	₹20 lakh	₹10 lakh
Restaurants in Specified Premises	₹20 lakh	₹10 lakh
Inter-State Restaurant Services	Mandatory regardless of turnover	Mandatory

Mandatory Registration Cases for Hotel Restaurants

📌 Turnover Exceeds Threshold: Registration is mandatory once aggregate turnover crosses ₹20 lakh (₹10 lakh in special category states).
📌 Inter-State Services: Providing restaurant services across state borders requires registration.
📌 Reverse Charge Liability: Persons liable to pay tax under RCM must register.
📌 E-Commerce Operators: Hotels selling through OTAs or food delivery platforms must register.

Voluntary Registration: Even if turnover is below the threshold, voluntary registration may be beneficial for claiming ITC (at 18% GST for specified premises) and building business credibility.

Takeaway: If your turnover exceeds ₹20 lakh, GST registration is mandatory. Hotels classified as specified premises must register to claim ITC at 18%.

5. Composition Scheme for Hotel Restaurants – Eligibility & Conditions

The Composition Scheme is a simplified GST option for small restaurants. Under this scheme, eligible restaurants pay a flat 5% GST on turnover (2.5% CGST + 2.5% SGST) with no ITC benefits.

Parameter	Details
Eligibility	Restaurants with turnover up to ₹1.5 crore (₹75 lakh in special category states)
GST Rate	5% on turnover (2.5% CGST + 2.5% SGST)
ITC	❌ Not available on any inputs, input services, or capital goods
Invoicing	Bill of Supply (cannot collect GST separately from customers)
Returns	CMP-08 (quarterly) + GSTR-4 (annual)

Restrictions under Composition Scheme

❌ Cannot serve alcohol – Liquor is outside GST and not eligible for composition.
❌ Cannot sell through e-commerce platforms – Restaurants on Zomato/Swiggy cannot opt for composition.
❌ Cannot make inter-state supplies – Services must be within the same state.
❌ Cannot be in specified premises – Hotels classified as specified premises are not eligible for composition.
❌ Cannot deal in excluded goods – Ice cream, pan masala, tobacco, etc.

Example – Composition Scheme: A small hotel restaurant with turnover of ₹80 lakh opts for the composition scheme. GST payable = 5% of ₹80 lakh = ₹4,00,000 (₹2,00,000 CGST + ₹2,00,000 SGST). The restaurant cannot claim ITC but benefits from simplified quarterly filing.

Takeaway: Composition scheme is suitable for small, intra-state hotel restaurants that do not serve alcohol, do not use delivery platforms, and are not classified as specified premises.

6. Input Tax Credit (ITC) for Hotel Restaurants – Rules & Restrictions

Input Tax Credit (ITC) is the mechanism that allows businesses to offset GST paid on purchases against GST collected on sales. For hotel restaurants, ITC availability depends on the specified premises status and the GST rate charged.

Hotel Restaurant Type	GST Rate	ITC Availability
Non-Specified Premises (Room Tariff ≤ ₹7,500)	5%	❌ No ITC
Specified Premises (Room Tariff > ₹7,500)	18%	✅ Yes
Composition Scheme Restaurant	5% (on turnover)	❌ No ITC

ITC Rules for Specified Premises (18% GST)

✅ Raw Materials: GST paid on food ingredients, beverages, and supplies used in restaurant services.
✅ Capital Goods: GST on kitchen equipment, furniture, and fixtures used in the restaurant.
✅ Input Services: GST on rent, electricity, professional services, and maintenance.
✅ Common Credits: ITC on common expenses must be apportioned under Rule 42 for taxable and exempt supplies.

ITC Reversal for Mixed Supplies (Rule 42)

If a hotel has both specified premises (18% with ITC) and non-specified premises (5% without ITC), ITC must be apportioned under Rule 42. The ITC attributable to the 5% supply cannot be claimed.

Blocked Credits under Section 17(5)

❌ Food and Beverages: ITC on food, beverages, and outdoor catering is blocked unless used for making outward supplies of the same category.
❌ Restaurant Bills: ITC on restaurant bills for client entertainment or employee meals is blocked.
❌ Membership Fees: ITC on club or health membership fees is blocked.
❌ Motor Vehicles: ITC on motor vehicles for passenger transport is blocked (with exceptions).

Conditions for Claiming ITC

Valid Tax Invoice: Must contain GSTIN, SAC, and tax amounts.
Receipt of Goods/Services: Claim only after actual receipt.
Tax Paid to Government: Supplier must have deposited the tax.
Return Filing: Must be claimed in GSTR‑3B by the due date.
ITC Reconciliation: Reconcile with GSTR-2B before claiming.

Takeaway: Hotel restaurants at 18% GST (specified premises) can claim full ITC. Those at 5% GST (non-specified premises) cannot claim ITC. Mixed-use hotels must apportion ITC under Rule 42.

7. Common GST Mistakes by Hotel Restaurants & Practical Solutions

Hotel restaurants face unique compliance challenges due to the specified premises rules, ITC restrictions, and mixed supply situations. Below is an expanded list of real problems and their solutions.

7.1 Specified Premises Classification Mistakes

Mistake 1: Not Determining Specified Premises Status Annually Hotels fail to determine their specified premises status for the financial year based on the preceding year's room tariffs. Determine specified premises status before the start of each financial year. If any room exceeded ₹7,500 in the preceding year, the entire property is specified premises for the current year. File opt-in/opt-out declarations by 31 March.

Mistake 2: Charging 5% GST at Specified Premises Hotel Restaurant Hotel restaurants in specified premises charge 5% instead of 18%, leading to tax demands. Specified premises hotel restaurants must charge 18% GST on all restaurant services. Even walk-in customers are charged 18%. Update billing systems accordingly.

Mistake 3: Charging 18% GST at Non-Specified Premises Restaurant Hotels with room tariff below ₹7,500 charge 18% instead of 5% at their restaurants. Non-specified premises hotel restaurants charge 5% GST without ITC. This applies to all restaurant services, including room service.

Mistake 4: Not Filing Opt-In / Opt-Out Declarations Hotels eligible to opt-in or opt-out of specified premises status fail to file the required declarations. File opt-in/opt-out declarations (Annexure VII/VIII/IX) after 1 January but before 31 March of the preceding financial year. Once filed, the declaration is effective for the entire year and cannot be changed mid-year.

Mistake 5: Applying Specified Premises Status Chain-Wise Instead of Property-Wise Hotel chains apply specified premises status to all properties based on one property's room tariff. Specified premises status is property-wise, not chain-wise. Each hotel property must be evaluated separately based on its own room tariffs in the preceding financial year.

Mistake 6: Using Declared Tariff Instead of Actual Value of Supply Hotels use the "declared tariff" (published rack rate) instead of the actual value of supply for specified premises determination. Specified premises status is based on the actual value of supply (transaction value) of accommodation, not the declared tariff. Use actual transaction values from the preceding financial year.

7.2 ITC and Rate Mistakes

Mistake 7: Claiming ITC at 5% GST on Restaurant Services Hotel restaurants charging 5% GST claim ITC on inputs, leading to tax demands and penalties. ITC is not available at 5% GST. Hotels must reverse any ITC claimed for the 5% restaurant segment. Maintain separate records for 5% and 18% supplies.

Mistake 8: Not Apportioning ITC Under Rule 42 for Mixed Supplies Hotels with both specified (18%) and non-specified (5%) segments claim full ITC without apportionment. Apportion ITC under Rule 42 for common credits used in both taxable (18%) and non-creditable (5%) supplies. Maintain detailed working papers for ITC reversal.

Mistake 9: Claiming ITC on Blocked Credits Hotels claim ITC on food and beverages, club memberships, or employee meals. Blocked credits under Section 17(5) cannot be claimed. Review all ITC claims to ensure they are not in the blocked category.

Mistake 10: Not Reconciling GSTR-2B with Purchase Invoices Filing GSTR-3B without verifying GSTR-2B, leading to ITC mismatches. Always reconcile GSTR-2B with purchase invoices before filing GSTR-3B. Under IMS effective April 2026, this becomes mandatory.

Mistake 11: Missing the 30 November ITC Claim Deadline Claiming ITC for previous financial years after 30 November of the following year. ITC for any invoice must be claimed by 30 November of the following financial year. Missing this deadline results in permanent loss of ITC.

Mistake 12: Not Reversing ITC on Free Meals and Complimentary Services Hotels provide complimentary meals and services but do not reverse ITC on inputs used for them. ITC on inputs used in free meals or complimentary services must be reversed. Maintain a register of complimentary services and reverse ITC accordingly.

7.3 Composition Scheme Mistakes

Mistake 13: Continuing Composition After Turnover Exceeds ₹1.5 Crore Hotel restaurants continue composition scheme after turnover crosses the limit. Exit composition immediately when turnover crosses ₹1.5 crore. File Form CMP-04 within 7 days. Pay regular GST from the following month.

Mistake 14: Serving Alcohol While in Composition Hotels serving alcohol opt for composition scheme, which is not allowed. Composition scheme is not available for businesses serving alcohol. Exit composition immediately and switch to the regular scheme.

Mistake 15: Selling on Zomato/Swiggy While in Composition Hotel restaurants registered under composition scheme start selling on delivery platforms. Composition scheme is not available for e-commerce sellers. Switch to the regular scheme immediately.

Mistake 16: Charging GST Separately on Composition Scheme Bills Composition dealers charging 5% GST on bills in addition to the 1% turnover tax. Composition dealers cannot charge GST separately. They issue a "Bill of Supply" and pay 5% from turnover.

Mistake 17: Not Displaying Composition Board Not displaying the mandatory "Composition Taxable Person" board. Display the board prominently at the restaurant entrance and print the declaration on all bills. Non-compliance attracts penalties.

7.4 Return Filing and Documentation Mistakes

Mistake 18: Not Filing NIL Returns During Off-Season Hotels closing temporarily and skipping GST returns. File NIL returns during closure. Non-filing of NIL returns attracts late fees of ₹20 per day.

Mistake 19: Not Reconciling GSTR-1 with GSTR-3B Discrepancies between GSTR-1 and GSTR-3B without reconciliation. Reconcile GSTR-1 with GSTR-3B before filing. Use GSTR-1 data to verify output tax liability.

Mistake 20: Not Filing GSTR-9 Annual Return Hotels skipping the annual return filing. GSTR-9 is mandatory for all registered taxpayers. Due date is 31 December. GSTR-9C is required if turnover exceeds ₹5 crore.

Mistake 21: Not Maintaining Proper Documentation for ITC Reversal Hotels reverse ITC without proper documentation. Maintain detailed working papers for ITC reversal under Rule 42/43. Document the methodology and calculations.

Mistake 22: Not Maintaining Records of Opt-In / Opt-Out Declarations Hotels do not maintain copies of specified premises declarations. Maintain copies of all opt-in/opt-out declarations filed with the department. These are essential for audit defence and annual compliance.

Mistake 23: Not Updating Hotel Address in GST Registration After Renovation Moving or renovating hotel premises without updating GST registration. File Form GST REG-14 within 15 days of address change. Failure attracts penalty of ₹25,000.

Mistake 24: Not Closing GST Registration When Hotel Closes Hotels discontinue without cancelling GST registration. File Form GST REG-16 for cancellation within 30 days of business closure. File final returns and pay pending dues.

Mistake 25: Not Reporting Cash Sales Accurately High cash sales at hotel restaurants are not reconciled with bank deposits. Maintain daily cash registers and deposit cash regularly into the business account. GST returns must reconcile with bank deposits.

Takeaway: Most GST mistakes by hotel restaurants arise from incorrect specified premises classification, ITC mismanagement, and failure to file annual declarations. A disciplined approach to annual determination, ITC reconciliation, and documentation prevents the majority of compliance issues.

8. Penalties & Risks for Non‑Compliant Hotel Restaurants

⏳ Late Filing: ₹50 per day (₹25 CGST + ₹25 SGST) for each day of delay.
💰 Interest: 18% per annum on unpaid tax.
🔁 ITC Reversal: 100% reversal + 18% interest for wrongful availment.
⚖️ Prosecution: Tax evasion above ₹5 crore – arrest under Section 132.
📩 Show Cause Notices: Incorrect specified premises classification or ITC claims trigger scrutiny and penalties.
🏨 FSSAI Penalties: Operating without FSSAI registration attracts fines up to ₹5 lakh and imprisonment.

Case Study: A hotel restaurant incorrectly charged 5% GST instead of 18% (specified premises) for 8 months. The department issued a notice demanding differential tax of 13%, plus interest and penalties. Total demand exceeded ₹10 lakh.

Takeaway: Correctly determine specified premises status and apply the correct GST rate to avoid penalties.

9. Industry‑Specific GST Insights for Hotel Restaurants

Budget Hotels (Room Tariff ≤ ₹7,500)

5% GST on restaurant services. No ITC. Register if turnover exceeds ₹20 lakh. Composition scheme available if no alcohol.

Luxury Hotels (Room Tariff > ₹7,500)

18% GST on restaurant services with ITC. Specified premises status applies. File opt-out declaration if needed.

Hotel Chains with Mixed Properties

Specified premises status is property-wise. Each hotel evaluated separately based on room tariffs. Apportion ITC under Rule 42.

Resort Hotels

Similar rules apply. 5% or 18% based on room tariff. Banquet services follow specified premises rules.

Hotels with Banquet Halls

Banquet services at specified premises attract 18% with ITC. Hall rental without catering attracts 18%.

Heritage Hotels

Room tariff determines specified premises status. Restaurant services follow hotel classification.

Takeaway: Tailor your GST compliance based on your hotel type – budget, luxury, chain, or resort.

10. Comparison: Specified vs Non-Specified Premises

Parameter	Non-Specified Premises	Specified Premises
Room Tariff Threshold	≤ ₹7,500 per night	> ₹7,500 in preceding FY
Restaurant GST Rate	5%	18%
ITC Availability	❌ No	✅ Yes
Composition Scheme	✅ Available (if no alcohol)	❌ Not available
Opt-In Option	✅ Available	N/A
Opt-Out Option	N/A	✅ Available

Takeaway: Specified premises status determines whether the hotel restaurant charges 5% or 18% GST. The status is annual, property-wise, and based on preceding year's room tariffs.

11. Frequently Asked Questions – GST for Hotel Restaurant

Hotel restaurant services attract 5% GST without ITC for hotels with room tariff ≤ ₹7,500 per night. For hotels classified as specified premises (room tariff > ₹7,500 in the preceding financial year), the rate is 18% GST with ITC.

A hotel is classified as "specified premises" if the value of supply of any accommodation unit exceeded ₹7,500 per day at any time in the preceding financial year. This status is determined annually, property-wise, and applies to the entire financial year.

It depends on the hotel's specified premises status. 5% for non-specified premises (room tariff ≤ ₹7,500). 18% for specified premises (room tariff > ₹7,500 in preceding FY).

Hotel restaurants charging 18% GST (specified premises) can claim ITC on eligible inputs. Those charging 5% GST (non-specified premises) cannot claim ITC.

For hotels with room tariff below ₹7,500, the restaurant services attract 5% GST without ITC. This applies to all restaurant services, including room service and walk-in customers.

For hotels with room tariff above ₹7,500, the restaurant services attract 18% GST with ITC. This applies to all restaurant services, including walk-in customers.

Specified premises status is determined based on the value of supply (actual transaction value) of any accommodation unit in the preceding financial year. If any room exceeded ₹7,500 per day at any time, the entire property is specified premises for the next year.

Yes – hotels with room tariff ≤ ₹7,500 can opt-in to specified premises status. Hotels that cross the threshold can opt-out. Declarations must be filed after 1 January but before 31 March of the preceding financial year.

Hotel rooms up to ₹7,500 per unit per day attract 5% GST without ITC. Rooms above ₹7,500 attract 18% GST with ITC.

No – alcoholic beverages for human consumption are outside the GST regime. They are taxed under State Excise / VAT. Only the food portion attracts GST.

Hotel restaurants under the composition scheme pay 5% GST (2.5% CGST + 2.5% SGST) on turnover up to ₹1.5 crore. They cannot claim ITC, serve alcohol, or use e-commerce platforms.

No – hotels classified as specified premises cannot opt for the composition scheme. They must register under the regular scheme and charge 18% GST with ITC.

Regular scheme: GSTR-1 by 11th, GSTR-3B by 20th of the following month. Composition scheme: CMP-08 quarterly by 18th, GSTR-4 by 30 June. Annual GSTR-9 by 31 December.

Use Rule 42 to apportion ITC on common credits used for both taxable (18%) and non-creditable (5%) supplies. Maintain detailed working papers and documentation.

Banquet services at specified premises attract 18% GST with ITC. At non-specified premises, they attract 5% GST without ITC. Hall rental without catering attracts 18% GST.

Yes – FSSAI registration is mandatory for all hotel restaurants. Apply for State or Central FSSAI License based on turnover and scale of operations.

Non-filing of GST returns attracts a late fee of ₹50 per day (₹20 per day for NIL returns) plus 18% interest per annum on unpaid tax. Continued non-compliance can lead to GSTIN cancellation and prosecution.

Food delivery through Zomato or Swiggy from a hotel restaurant follows the same rate as dine-in – 5% or 18% based on specified premises status. The platform collects and pays GST under Section 9(5).

No – the GST rate for hotel restaurant services is determined by the hotel's specified premises status, not by the customer type. All customers (in-house guests and walk-ins) are charged the same rate.

Room service in specified premises hotels attracts 18% GST with ITC, the same as restaurant services. In non-specified premises, room service attracts 5% GST without ITC.

12. Related GST Resources for Hotel Restaurants

GST Registration Guide Online GST Registration GST Return Filing Services GST Rates & Slabs 2026 Input Tax Credit (ITC) Guide GST Composition Scheme GST Invoice Format Documents for GST Registration GST for Food Business GST for Restaurants GST for Cafe Business GST for Catering Business