IndiaFilings / Learn / GST / Gst On Catering Services

How GST Applies to Catering Services in India?

Goods and Services Tax (GST) is a comprehensive, indirect tax levied on the supply of goods and services across India. GST operates under multiple tax slabs based on the nature of goods and services. Catering services are typically taxed at 18% under GST, with the availability of Input Tax Credit (ITC). Businesses can claim ITC on GST paid, subject to specific provisions outlined in the law. This article provides detailed information about GST on catering services, the applicable HSN Code, and other related aspects.

Want to know the GST rate and HSN code for some other product or service? Use the IndiaFilings HSN Code & GST Rate Finder tool to identify the applicable codes and rates quickly!

Get Started!

What is GST on Catering Services?

GST on catering services refers to the Goods and Services Tax applied to services related to providing food and beverages during events, functions, or gatherings. As per the GST framework in India, catering services typically fall under the 18% tax slab. This includes indoor and outdoor catering services offered by hotels, restaurants, or independent providers. However, the GST rate may vary based on factors such as the type of establishment and whether the service includes alcohol. Additionally, input tax credit (ITC) may be available for businesses availing catering services for official purposes, subject to specific conditions under the GST rule.

What is the GST rate on Food Catering Services?

GST for catering services is determined based on the nature of the service and the type of establishment providing it. The rates vary depending on the venue, contractual arrangements, and whether the service is event-based or part of an accommodation package. Below is a detailed table summarising GST on food catering services applicable to food, beverage, and accommodation services:

Type of Service	GST Rate	Input Tax Credit (ITC)
Food services provided by restaurants, including takeaway (both air-conditioned and non-a/c)	5%	Not Available
Food or drink served at cafeterias, canteens, or messes operating under a contractual agreement (e.g., offices, industries, schools, colleges)	5%	Not Available
Restaurant services within a hotel with a room tariff less than ₹7,500	5%	Not Available
Restaurant services within a hotel with a room tariff of ₹7,500 or more	18%	Available
Meals or food services provided by Indian Railways, IRCTC, or their licensees (in trains or at platforms)	5%	Not Available
Food services provided on premises arranged for functions along with venue rental	18%	Available
Food services at exhibitions, events, conferences, or occasional indoor/outdoor functions	18%	Available
Other accommodation, food, and beverage services	18%	Available

Learn more: GST rates for different goods and services in India

What is the HSN Code for Catering Services?

In the table below, we have given the relevant HSN codes for Catering services.

Description	HSN Code
Catering services in exhibition halls, events, marriage halls, and other indoor/outdoor functions.	996334
Room or unit accommodation services provided by hotels, inns, guest houses, clubs, etc.	996311
Campsite services.	996312
Recreational and vacation camp services.	996313
Room or unit accommodation services for students in student residences.	996321
Room or unit accommodation services provided by hostels, camps, paying guests, etc.	996322
Other room or unit accommodation services not elsewhere classified (n.e.c.).	996329
Services provided by restaurants, cafes, and similar eating facilities, including takeaway and room services.	996331
Services provided by hotels, inns, guest houses, clubs, etc., including room services and food delivery.	996332
Services are provided in canteens and other similar establishments.	996333
Catering services in trains, flights, etc.	996335
Preparation or supply of food, edible preparations, alcoholic and non-alcoholic beverages to airlines and transportation operators.	996336
Other contract food services.	996337
Other food, edible preparations, alcoholic and non-alcoholic beverage serving services not elsewhere classified (n.e.c.).	996339

55th Council Meeting on GST for Restaurant Services

The 55th GST Council Meeting introduced important updates to GST on restaurant services in hotels. The applicable tax rate will now depend on the "value of supply" of accommodation services provided by the hotel. If the value per unit exceeds ₹7,500, restaurant services will attract 18% GST with Input Tax Credit (ITC). For accommodation valued below ₹7,500, the GST rate will be 5% without ITC. Hotels also have the option to pay 18% GST with ITC by submitting a declaration before the start of the financial year. These changes will come into effect on April 1, 2025.

Conclusion

In conclusion, GST on catering services in India plays a significant role in defining the tax structure for food and beverage provisions during events and gatherings. Typically taxed at 18%, these services fall under specific HSN codes, ensuring proper classification and compliance. Businesses can benefit from the availability of Input Tax Credit (ITC) under certain conditions, reducing their overall tax burden. Understanding the applicable GST rates and HSN codes is essential for service providers and recipients to navigate the tax system effectively and ensure adherence to regulatory requirements.

Discover the GST rates and HSN codes you need with ease! Try the IndiaFilings HSN Code & GST Rate Finder tool for accurate and instant results!

Get Started!

FAQs

1. What is GST on Catering Services?

GST for catering services refers to the Goods and Services Tax applied to food and beverage services provided during events, functions, or gatherings. It is generally taxed at 18%, though it may vary depending on the type of establishment.

2. What is the Catering Services GST rate in India?

Catering services GST rate are typically taxed at 18%, though the rate may differ based on factors like the type of service, establishment, and whether alcohol is included.

3. Are Input Tax Credits (ITC) available on Catering Services?

Yes, businesses can claim Input Tax Credit (ITC) on paid GST on food catering services, subject to certain conditions specified under GST law.

4. What is the GST rate for restaurant services within hotels?

The GST rate for restaurant services within a hotel depends on the room tariff. If the tariff is less than ₹7,500, the GST rate is 5%. If it is ₹7,500 or more, the rate increases to 18%, with ITC available.

5. Can hotels choose their GST rate for restaurant services?

Yes, hotels can choose to pay 18% GST with ITC for restaurant services by submitting a declaration before the start of the financial year.

6. What is the GST rate for food services at exhibitions and events?

Food services provided at exhibitions, events, conferences, or functions are taxed at 18%, with ITC available under certain conditions.

7. How are GST rates for catering services determined?

The GST rates for catering services are determined based on the nature of the service, the type of establishment, and whether it includes food or beverage services, such as alcohol.

8. What are the applicable HSN codes for Catering Services?

The HSN codes for catering services range from 996334 for catering at events and functions to 996339 for other food, edible preparations, and beverage services not classified elsewhere.

9. Will there be any changes in GST rates for restaurant services in hotels?

Yes, the 55th GST Council Meeting introduced changes that will apply from April 1, 2025, where the GST rate for restaurant services will depend on the accommodation value in the hotel.

10. How can businesses quickly find the applicable GST rates and HSN codes?

Businesses can use the IndiaFilings HSN Code & GST Rate Finder tool to easily identify the GST rates and HSN codes for specific goods and services.

11. What is the GST on outdoor catering services?

The GST on outdoor catering services as well typically taxed at an 18% rate.

12. What is the applicable GST rate and HSN code if I provide catering services based on contractual agreements?

Catering services based on contractual agreements, not falling under ‘Outdoor Catering,’ are classified under 'Other Contract Food Services' with HSN code 996337. These services attract an 18% GST rate (9% CGST and 9% SGST).

About the Author

DINESH P
Dinesh Pandiyan is our expert content writer who specialises in business registration, tax regulations, trademark laws, and company compliance. His insightful articles deliver clear and actionable advice, helping businesses easily navigate and overcome complex legal and regulatory challenges.

Updated on: January 28th, 2025