What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
For ordinary restaurant food in India, takeaway and door delivery generally remain the same GST category: restaurant service. The listed rate is usually 5% without input tax credit when the restaurant is not at specified premises and the rate-table conditions are met. An app order can add separately taxed services, such as a platform fee. A delivery charge needs closer inspection because official material gives a general 18% rate for local delivery while a 2025 food-app answer said the app-specific delivery-rate issue still required examination. Read the invoice line by line instead of applying one GST rate to the entire order.
Takeaway and delivery are usually the same restaurant service
Changing how prepared food reaches you does not, by itself, change the GST classification. CBIC Circular No. 164/20/2021-GST, dated 6 October 2021, explains that “restaurant service” includes restaurants, cafes and similar eating facilities, including takeaway services, room service and door delivery of food. The clarification also covers food supplied by cloud or central kitchens.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
GST Calculator & Gst Billing App | Buy on Amazon |
That means a customer collecting a packed meal from a restaurant and a customer receiving the same meal at home are not automatically buying two different kinds of food supply. The restaurant-food portion remains restaurant service when the facts fit that classification.
The important qualification is the type of premises and the applicable rate entry. CBIC’s GST rate table lists restaurant service other than at specified premises at 5% without input tax credit, subject to the condition in the table. “Specified premises” and other rate-table qualifications matter; do not treat 5% as a universal rate for every hotel restaurant, venue or food transaction.
#1 Best Overall
- Gst calculator
What the 5% restaurant-service rate means
Rate and input-tax-credit condition
The 5% entry is a rate for the qualifying restaurant service, and it comes with a no-input-tax-credit condition. Input tax credit is a credit available to eligible businesses for GST paid on business inputs. The customer normally sees only the GST charged on the invoice, but the restaurant’s rate category includes this credit restriction.
Direct orders and app orders
In a written Rajya Sabha answer dated 1 April 2025, the Ministry of Finance stated that GST on restaurant services other than those located at specified premises is 5% without input tax credit whether supplied directly by the restaurant or through an electronic commerce operator (ECO), such as a food-ordering platform. The platform channel therefore does not, by itself, turn the restaurant food into an 18% supply.
This statement addresses the restaurant service. It does not mean every line appearing on an app checkout is taxed at 5%. An app may be supplying additional services to the restaurant, customer or delivery provider, and those services can have their own tax treatment.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesHow to read a takeaway bill
A straightforward takeaway invoice usually has fewer service components than an app order. Check these fields:
- Food items or restaurant service: For qualifying ordinary restaurant service, the listed rate is generally 5% without input tax credit, subject to the rate-table condition and premises qualification.
- Service charge: This is a restaurant-imposed charge, not a government levy. Its GST treatment must be distinguished from GST on the food itself.
- Other charges: Packaging, convenience or similar amounts may appear, depending on the restaurant’s billing practice. Their treatment depends on what is supplied and how the invoice describes it.
Do not assume that a line labelled “service charge” is government GST. CBIC’s FAQ answer 142 states that service charge is not a statutory levy and is not levied by the Government. CBIC also says that a service charge, when it is consideration for a supply, is liable to GST. In other words, the restaurant may charge it, but it is not the same thing as the GST collected under a government tax heading.
Why an app order can show more than 5% GST
Restaurant food line
The food supplied by the restaurant can still be the 5% restaurant service described above, whether the order is placed directly or through an ECO. Look for the restaurant’s food subtotal and the GST amount attached to that line or group of lines.
Platform service fee
The 1 April 2025 Ministry of Finance answer separately states that other services provided by food-delivery apps, including platform services, are levied at 18% GST. A platform fee is therefore a different supply from the prepared food. Seeing 18% on that fee does not establish that the food itself was taxed at 18%.
Quick wins for a faster PC:
Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →The supplier and tax base can differ by line. The restaurant supplies the restaurant service; the platform supplies its platform service. The invoice should identify the taxable amount and GST associated with each charge. If the app combines several services into one description, ask the platform or restaurant for the tax breakup rather than inferring it from the order total.
Delivery charge
Delivery is the line that requires the most caution. A Press Information Bureau FAQ on decisions of the 56th GST Council says local delivery services are taxable at 18% and explains that liability can depend on whether the supplier is registered and whether an ECO is involved.
However, the Ministry of Finance’s 2025 parliamentary answer specifically recorded that the question of the applicable rate for delivery of food in relation to orders placed on food-delivery apps needed further examination. The two statements should not be flattened into a universal rule for every “delivery fee” on every food-app invoice. A local courier service, a platform-arranged delivery, and a bundled charge may involve different supplier and liability facts.
For a real transaction, use the invoice’s line-item tax breakup and check the current notification or clarification applicable to that supplier arrangement. Do not multiply the entire order value by 18% merely because a delivery label appears.
Takeaway versus app delivery: a practical comparison
| Invoice component | What is established | What to check |
|---|---|---|
| Prepared restaurant food | Takeaway and door delivery fall within restaurant service when the classification applies. Ordinary restaurant service other than at specified premises is listed at 5% without input tax credit, subject to the rate-table condition. | Whether the premises are specified, whether the rate-table condition is met, and the GST line attached to the food. |
| Food ordered through an ECO | The 1 April 2025 Ministry of Finance answer says qualifying restaurant service remains 5% without input tax credit when supplied through an ECO or directly. | Which party issues the invoice and remits GST; the channel alone does not set the food rate. |
| Platform service fee | The same answer states 18% for other app services such as platform services. | The fee’s taxable value and whether the invoice separately identifies GST. |
| Delivery charge | A 56th Council FAQ gives 18% for local delivery services generally. The 2025 food-app answer says the app-specific delivery-rate issue required further examination. | The actual supplier, ECO role, registration status, invoice wording and current applicable notification. |
| Restaurant service charge | It is not a statutory government levy. CBIC says a service charge as consideration for a supply is liable to GST. | Whether the restaurant charged it, the amount on which GST was calculated and the invoice’s tax breakup. |
How to check an app invoice step by step
- Open the tax invoice, not just the payment screen. In the app, use the order-history option and select “invoice,” “bill details” or the equivalent download control. The final payment summary may group charges that the tax invoice separates.
- Identify the food supplier. Record the restaurant name, GSTIN if shown, food subtotal and the GST amount attributed to restaurant service.
- Separate platform charges. Mark any platform, convenience, booking or technology fee. Compare its taxable value with the GST line; the 2025 Ministry of Finance answer identifies platform services as an 18% category.
- Isolate delivery. Note the exact label, supplier and GST rate printed for the delivery line. Do not treat a general “delivery” label as proof that the whole order is taxed at one rate.
- Check service charge separately. A restaurant service charge is not the government’s GST. Confirm whether it is included in the taxable value and how the invoice describes it.
- Check the premises qualification. If the restaurant is in a hotel or another setting that may be a specified premise, the ordinary 5% entry may not be the applicable category. Ask the supplier which rate entry it used.
- Request clarification in writing. Send the invoice number and ask the restaurant or platform to explain each taxable line. Keep the response with the invoice if you need to raise a formal complaint.
Worked example without guessing the total tax
Suppose an app invoice lists four separate lines: prepared food, a platform fee, delivery, and a restaurant service charge. The correct method is to inspect each line rather than apply one percentage to the grand total.
- The prepared-food line is tested against the restaurant-service classification and the 5% rate entry, including the specified-premises qualification and no-input-tax-credit condition.
- The platform-fee line is compared with the 18% platform-service statement in the 2025 Ministry of Finance answer.
- The delivery line is checked against the supplier and arrangement. The general local-delivery FAQ states 18%, while the food-app-specific issue was recorded as requiring further examination.
- The service-charge line is treated as a restaurant charge, not as a government levy, and its GST treatment is read from the invoice and applicable rules.
Because the delivery classification and supplier facts are not established by the labels alone, a reliable total cannot be calculated from a hypothetical basket. Use the actual taxable bases and rates printed on the invoice.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Who collects or remits GST?
Customers often confuse the party collecting money with the party supplying each service. A platform can process payment while the restaurant supplies the food. The platform may separately supply a platform service, and a delivery provider may supply transportation or delivery. GST responsibility can therefore differ by component.
The 2025 parliamentary answer confirms the 5% restaurant-service rate whether supplied directly or through an ECO; it does not say that every platform-handled amount is restaurant service. The 56th Council FAQ also describes liability for local delivery by reference to supplier registration and ECO involvement. Those distinctions are why the invoice’s supplier details and tax breakup matter more than the checkout headline.
Common mistakes and how to correct them
“Delivered food must be 18%.”
Incorrect as a blanket statement. CBIC includes door delivery in restaurant service, and the Ministry of Finance says qualifying restaurant service supplied through an ECO is 5% without input tax credit. An 18% platform-service line does not change the food classification.
“The whole app order is 5%.”
Also incorrect as a blanket statement. Platform services are separately identified at 18% in the 2025 answer, and delivery charges require an invoice- and arrangement-specific review.
“Service charge is another government tax.”
CBIC expressly says service charge is not a statutory levy and is not levied by the Government. It is a charge imposed by the restaurant; GST may apply to it as consideration for a supply.
“The delivery line proves the rate.”
A label alone is not enough. The general local-delivery FAQ states 18%, but the food-app-specific rate question was recorded as needing further examination. Check the current rule for the actual supplier and transaction.
“Every restaurant qualifies for the ordinary 5% entry.”
The rate table attaches conditions and distinguishes specified premises. Verify the premises and the relevant rate entry before challenging an invoice.
What to do when the GST breakup looks wrong
- Save the tax invoice, order number, date, restaurant name and GSTIN, if displayed.
- Compare the food, platform, delivery and service-charge lines with the GST amounts shown beside them.
- Ask the issuing supplier for the classification and notification used for the disputed line. Be specific: identify the exact amount and label rather than asking why the “whole order” has a certain rate.
- If the response is unclear, contact the app’s support channel and the restaurant separately, because they may be suppliers of different services.
- For a material dispute, consult a qualified Indian GST professional or the appropriate tax authority with the complete invoice. A generic online percentage cannot resolve a supplier-specific delivery arrangement.
Key official statements
CBIC’s Circular No. 164/20/2021-GST says that restaurant service includes takeaway services and door delivery of food. CBIC’s rate table lists 5% without input tax credit for restaurant service other than at specified premises, subject to its stated condition.
The Ministry of Finance, in Rajya Sabha Unstarred Question No. 3446 answered on 1 April 2025, states that qualifying restaurant service is 5% without input tax credit whether provided directly or through an ECO. The same answer states that platform services supplied by food-delivery apps are taxed at 18% and records that the food-app delivery-service-rate issue needed further examination.
The Press Information Bureau’s FAQ on the 56th GST Council decisions gives 18% for local delivery services generally and discusses liability based on registration and ECO involvement. CBIC’s FAQ answer 142 says service charge is not a statutory government levy, while a service charge that is consideration for a supply is liable to GST.
Recommended Free Tools
Bottom line for customers
Compare supplies, not shopping channels. Takeaway and door-delivered restaurant food ordinarily stay within the restaurant-service category, with a listed 5% rate without input tax credit for qualifying ordinary premises. An app platform fee can be a separate 18% service. A delivery fee cannot be assigned a universal rate from its label alone because the official record distinguishes general local delivery from the still-examined food-app question. Service charge is a restaurant charge, not government GST. The only dependable way to know what you paid is to read each invoice line, its supplier and its tax breakup.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
