Restaurant HSN Code (SAC 9963) and GST Rate
Restaurant, cafe, takeaway and food delivery services, and outdoor catering.
- SAC code
- 9963
- GST rate
- 5%
- Chapter
- 99: Services (SAC)
- Before 22 Sep 2025
- No change
What is the SAC code for restaurant?
Restaurant falls under SAC 9963.
Food served by restaurants is SAC 996331 and taxed at 5% with no input tax credit; outdoor catering follows the same rule. Restaurants inside hotels with room tariffs above Rs 7,500 charge 18% and can claim credit. Food ordered through a delivery app is billed by the app, which pays the 5% on the restaurant's behalf.
| Code | Description |
|---|---|
| 996331 | Services by restaurants, cafes and similar eating places, including takeaway and delivery |
GST rate on restaurant
The GST rate on restaurant is 5%. 5% without input tax credit for restaurants and outdoor catering. 18% with credit only for restaurants in 'specified premises' (a hotel that declared a room tariff above Rs 7,500 per unit per day in the previous year, or opted in). A standalone restaurant cannot opt for 18%.
| GST rate | Within a state | Between states |
|---|---|---|
| 5% | CGST 2.5% + SGST 2.5% | IGST 5% |
Compare other goods on the GST rates list.
Which SAC digits to write on your invoice
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 9963 |
| Above Rs 5 crore | 6 on every invoice | 996331 |
Sample GST invoice line for restaurant
Here is how a line for restaurant looks on a tax invoice within one state: 1 × bill at Rs 2,400.00 each, taxed at 5%. The figures are an example, not a market price.
| Item | SAC | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Restaurant | 9963 | 1 × bill | 2,400.00 | 2,400.00 | 60.00 | 60.00 | 2,520.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 120.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 99 at a glance
Chapter 99 (Services (SAC)) covers: Services under GST, coded with a Services Accounting Code (SAC) that starts with 99.
Other pages in chapter 99
- Works ContractSAC 9954 · 18%
- TransportationSAC 9964 and 9965 · 5% or 18%
- Taxi and CabSAC 9964 · 5% or 18%
- Air TicketSAC 9964 · 5% or 18%
- FreightSAC 9965 · 5% or 18%
- CourierSAC 9968 · 18%
- InsuranceSAC 9971 · Exempt or 18%
- RentSAC 9972 · Exempt or 18%
- Legal ServicesSAC 9982 · 18%
- ConsultancySAC 9983 · 18%
- SoftwareSAC 9983 · 18%
- AdvertisingSAC 9983 · 18%
Related HSN codes
Products often bought, sold or invoiced together with restaurant:
Frequently asked questions
What is the HSN or SAC code for restaurant?
Restaurant falls under SAC 9963: restaurant, cafe, takeaway and food delivery services, and outdoor catering. Common 6 digit codes are 996331 for services by restaurants, cafes and similar eating places, including takeaway and delivery.
What is the GST rate on restaurant?
5% without input tax credit for restaurants and outdoor catering. 18% with credit only for restaurants in 'specified premises' (a hotel that declared a room tariff above Rs 7,500 per unit per day in the previous year, or opted in). A standalone restaurant cannot opt for 18%.
How many digits of the restaurant SAC code go on a GST invoice?
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 9963 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 996331, on every invoice.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.