Restaurant GST Calculator

How to Calculate GST on a Restaurant Bill (Formula + Example)

Every restaurant, café, cloud kitchen, and hotel in India needs to charge GST correctly on customer bills. This restaurant GST calculator works out the exact GST amount, taxable base, and final bill — including optional service charge and discounts — so you never have to do the maths by hand.

The formulas used are:

• Service Charge Amount = Taxable Amount × Service Charge % ÷ 100
• Taxable Base = Taxable Amount + Service Charge Amount
• GST Amount = Taxable Base × GST Rate ÷ 100
• Bill Before Discount = Taxable Base + GST Amount
• Final Bill = Bill Before Discount − Discount

Now the same bill with a 10% service charge and a flat ₹100 discount applied:

Plug your own bill amount, GST rate, service charge, and discount into the free GST calculator above to see your exact final price.

GST Rates on Restaurant Food in India

The GST rate for restaurants in India depends mainly on the type of establishment:

Restaurant Type	GST Rate	Input Tax Credit (ITC)
Standalone restaurants, cafés, cloud kitchens, non-AC/AC dine-in	5%	Not available
Restaurants inside hotels with room tariff ≥ ₹7,500/night	18%	Available
Outdoor catering	18%	Available

GST rules and slabs can change with government notifications, so always confirm the current applicable rate for your establishment with a chartered accountant before filing returns or fixing menu prices.

Is Service Charge Taxable Under GST?

Yes — when a restaurant collects a service charge, it becomes part of the taxable value and GST is calculated on food value plus service charge combined. Unlike GST, however, service charge is not a government-mandated tax. It is a discretionary fee set by the restaurant, and customers in India have the legal right to ask for it to be waived if unhappy with service.

How to Calculate GST-Inclusive Menu Prices (Reverse GST)

If your menu already shows a GST-inclusive final price and you need to know how much of it is tax, use the reverse formula:

• Base Amount = Final Price ÷ (1 + GST Rate ÷ 100)
• GST Amount = Final Price − Base Amount

For example, a GST-inclusive menu price of ₹1,050 at 5% GST has a base (pre-tax) amount of ₹1,000 and GST of ₹50. Switch to "Inclusive of GST" mode in the calculator above to work this out instantly for any price.

Get Your Pricing Right Beyond Just GST

GST is only one part of pricing a menu correctly — food cost, overheads, and target margin matter just as much. Use our menu pricing calculator to price dishes profitably, and our profit calculator to see how tax, cost, and pricing decisions flow through to your bottom line.

Restaurant GST Calculator — Frequently Asked Questions

What is the GST rate on restaurant food in India?

Most standalone and non-AC restaurants charge 5% GST on food (without input tax credit). Restaurants located inside hotels with room tariff of ₹7,500 or more per night charge 18% GST (with input tax credit available). GST rules can change with government notifications, so always confirm current rates with a chartered accountant.

How do I calculate GST on a restaurant bill?

GST Amount = Taxable Amount × GST Rate ÷ 100. Final Bill = Taxable Amount + Service Charge + GST − Discount. For example, on a ₹1,000 taxable bill at 5% GST with no service charge or discount, GST = ₹50 and the final bill = ₹1,050.

Is service charge taxable under GST?

Yes. Service charge collected by a restaurant is added to the taxable value before GST is applied, so GST is charged on food value plus service charge combined. Service charge itself is optional and not a government tax — customers can decline to pay it.

Can restaurants claim input tax credit (ITC) on the 5% GST rate?

No. Restaurants charging the 5% GST rate cannot claim input tax credit on their purchases. Restaurants charging 18% GST (typically those inside hotels with room tariff ₹7,500+) can claim input tax credit on eligible inputs.

How do I calculate the base price if my menu price is GST inclusive?

Base Amount = Final Price ÷ (1 + GST Rate ÷ 100). GST Amount = Final Price − Base Amount. For example, a GST-inclusive price of ₹1,050 at 5% GST has a base amount of ₹1,000 and GST of ₹50.

Other Free Restaurant Calculators