GST for Restaurants and Cafés in Kolkata (2026): 5% vs 18%, Swiggy and Zomato, Bars, Service Charge and Licences
Most restaurants and cafés in Kolkata charge 5% GST on food and beverages, without input tax credit. The rate becomes 18% with input tax credit only when the restaurant is inside a hotel that charges more than ₹7,500 a day for any room. Orders through Swiggy and Zomato are taxed in the platform’s hands, and liquor is outside GST and taxed under West Bengal excise and VAT. A restaurant with turnover up to ₹1.5 crore can choose the composition scheme at 5% of turnover. This guide sets out the rates and the compliance points that trip up Kolkata restaurants.
GST rates for food businesses
| Business | GST |
|---|---|
| Standalone restaurant, café, dhaba, food court | 5%, no input tax credit |
| Restaurant in a hotel with any room tariff above ₹7,500 a day | 18%, with input tax credit |
| Cloud kitchen supplying through delivery platforms | 5%, paid by the platform on those orders |
| Outdoor catering (weddings, events) | 5%, no input tax credit, unless at specified premises |
| Bakery selling packed cakes and bread as goods | Rate for the goods; bread is exempt, most bakery products are 5% |
| Alcoholic drinks | Outside GST; West Bengal excise and VAT apply |
Swiggy, Zomato and delivery charges
For restaurant food ordered through a food delivery platform, the platform collects and pays the 5% GST under section 9(5). The restaurant does not charge GST on those orders but must still report them. Platform commission and advertising charges carry 18% GST, and because restaurants at 5% get no credit, this GST is a cost. Reconcile platform settlement statements every month with your GSTR-1.
Composition for restaurants
Restaurants with turnover up to ₹1.5 crore can pay 5% of turnover under composition (2.5% CGST and 2.5% SGST), file CMP-08 quarterly and GSTR-4 yearly, and cannot charge GST on bills. Since normal restaurants also pay 5% without credit, composition mostly saves paperwork rather than tax. Compare before opting. See the GST composition scheme guide.
Bars and liquor
Alcohol for human consumption is outside GST. A restaurant-bar needs a West Bengal excise licence (an on-shop licence for a bar), and liquor sales carry state levies. Food and soft drinks at the bar remain under GST. Keep separate billing for liquor and food.
Service charge
The Central Consumer Protection Authority’s guidelines say restaurants cannot add a service charge automatically or by default, and customers can ask for it to be removed. If a voluntary service charge is collected, GST applies on it at the same rate as the food.
E-invoicing and records
E-invoicing applies to B2B invoices once a business’s aggregate turnover crosses ₹5 crore in any year. Most restaurant bills are B2C, but invoices to corporate clients for events or catering need an IRN if you are above the limit. Keep daily sales summaries, POS data and platform statements for at least the statutory retention period.
Licences for a Kolkata restaurant
- FSSAI State licence. See our FSSAI licence in Kolkata guide.
- KMC trade licence (Certificate of Enlistment). See KMC trade licence.
- Shop and establishment registration.
- Fire safety clearance where the size or seating requires it.
- Excise licence for liquor, and signage permission where applicable.
FAQs
What is the GST rate for restaurants in Kolkata?
5% without input tax credit for most restaurants; 18% with credit only in hotels with a room tariff above ₹7,500 a day.
Do restaurants charge GST on Swiggy and Zomato orders?
No. The platform pays GST on those orders under section 9(5).
Is GST charged on liquor in a Kolkata bar?
No. Liquor is outside GST; state excise and VAT apply.
Can a restaurant charge a service charge?
Not by default. Under consumer protection guidelines, a service charge cannot be added automatically.
TAXAJ handles GST, accounts and licences for restaurants and cafés across Kolkata. See our GST return filing service or talk to our Kolkata team.
Last updated 11 November 2026. Sources: Notification 11/2017-Central Tax (Rate) as amended, including the September 2025 changes; CGST Act, 2017, sections 9(5) and 10; CCPA guidelines on service charge (July 2022); e-invoicing notifications under rule 48(4). General information only.
