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Goods and Services Tax (GST) is a unified, indirect tax levied on the supply of goods and services throughout India. It operates under a multi-tier rate structure, with different tax slabs depending on the nature of the goods or services. Catering services generally attract an 18% GST, and providers are eligible to claim Input Tax Credit (ITC), subject to conditions specified in the GST law. This article offers a comprehensive overview of how GST applies to catering services, including the relevant HSN Code and other key regulatory aspects.
GST on Catering Services in India
GST on catering services refers to the Goods and Services Tax levied on the provision of food and beverages at events, gatherings, or functions. As per India’s GST framework, most catering services fall under the 18% tax slab, including indoor and outdoor catering provided by hotels, restaurants, or independent service providers. However, the applicable rate may vary depending on the nature of the service, location, and whether alcohol is involved.
Businesses availing of catering services for official purposes may be eligible for Input Tax Credit (ITC), subject to specific conditions under the GST law
GST Rates Applicable to Food & Catering Services
The GST rate on food and catering services depends on various factors such as the service provider, location, and whether it is bundled with accommodation. The table below provides a breakdown:
| Type of Service | GST Rate | Input Tax Credit (ITC) |
|---|---|---|
| Food services by restaurants (including takeaway, both AC and non-AC) | 5% | Not Available |
| Food served in canteens, messes, or cafeterias under a contract (e.g., offices, schools, factories) | 5% | Not Available |
| Restaurant services in hotels with room tariff < ₹7,500 | 5% | Not Available |
| Restaurant services in hotels with room tariff ≥ ₹7,500 | 18% | Available |
| Catering by Indian Railways, IRCTC, or licensees (on trains or platforms) | 5% | Not Available |
| Catering at venues provided for events (including venue rental) | 18% | Available |
| Food services at exhibitions, conferences, indoor/outdoor events | 18% | Available |
| Other food, beverage, and accommodation services | 18% | Available |
HSN Codes for Catering and Related Services
HSN (Harmonized System of Nomenclature) codes are used to classify goods and services under GST. Below are key HSN codes applicable to catering and accommodation services:
| Description | HSN Code |
|---|---|
| Catering at events, exhibitions, marriage halls, etc. | 996334 |
| Hotel/guest house room accommodation services | 996311 |
| Campsite accommodation services | 996312 |
| Recreational/vacation camp services | 996313 |
| Student accommodation services in hostels/residences | 996321 |
| Hostel and PG accommodation services | 996322 |
| Miscellaneous accommodation services (not classified elsewhere) | 996329 |
| Services by restaurants, cafes, and similar establishments (including takeaway) | 996331 |
| Hotel/club guest services including room service and food delivery | 996332 |
| Canteen and similar food service establishments | 996333 |
| Catering services in trains, flights, etc. | 996335 |
| Food and beverage supply to airlines/transport operators | 996336 |
| Other contractual food services | 996337 |
| Other unclassified food and beverage services | 996339 |
Updates from the 55th GST Council Meeting
The 55th GST Council Meeting introduced significant changes to GST on restaurant services provided within hotels. The applicable GST rate now depends on the “value of supply” of accommodation:
Accommodation ≥ ₹7,500/unit: Restaurant services attract 18% GST with ITC.
Accommodation < ₹7,500/unit: Restaurant services attract 5% GST without ITC.
Hotels may also opt to pay 18% GST with ITC by filing a declaration before the start of the financial year.
These changes will take effect from April 1, 2025
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