What is the GST rate for a cloud kitchen?

Restaurant service, including cloud kitchens, is generally taxed at 5 percent without input tax credit. Kitchens located inside hotels with room tariffs above the notified threshold are taxed at 18 percent with credit.

Do I need GST registration for a cloud kitchen?

Registration is mandatory above the turnover threshold, and in practice as soon as you partner with Swiggy or Zomato, since they require a GSTIN to onboard restaurant partners.

Who pays GST on Swiggy and Zomato orders?

For orders through an e-commerce operator, the platform is liable to collect and pay GST on the restaurant service under Section 9(5), but the restaurant still reports those supplies in its returns.

GST for Restaurants & Cloud Kitchens in India

The rate that applies to you

A standalone cloud kitchen supplies "restaurant service", taxed at 5% GST without input tax credit. You cannot claim credit on your rent, packaging or equipment GST at this rate — that is the trade-off for the low rate.

The 18%-with-credit rate applies mainly to kitchens operating inside hotel premises above the notified room-tariff threshold.

When registration becomes compulsory

Turnover above the applicable threshold in your state.
Supplying through an e-commerce operator — Swiggy and Zomato require a GSTIN during onboarding regardless of turnover.
Making inter-state supplies (rare for a delivery kitchen).

Practical advice: if you intend to list on aggregators at all, register before you apply. Retrofitting a GSTIN mid-onboarding delays go-live by weeks.

How aggregator GST works

Under Section 9(5) of the CGST Act, for restaurant services supplied through an e-commerce operator, the platform collects and deposits the 5% GST to the government. You do not collect it from the customer on those orders — but you still report the supply in your GSTR-1 and GSTR-3B in the prescribed table.

Note that GST at 18% is charged to you on the aggregator's commission. That is a separate transaction and adds to your cost. See commission rates explained.

Direct and WhatsApp orders

For orders you take yourself — WhatsApp, phone, your own website — you are the supplier. You charge 5% GST on the bill and pay it yourself. Keep these separate in your books from aggregator orders; mixing them is the single most common filing error.

Returns you will file

GSTR-1 — outward supplies, monthly or quarterly.
GSTR-3B — summary and payment, monthly.
GSTR-9 — annual return, if applicable to your turnover.

Common mistakes

Claiming input tax credit while paying at 5% — leads to demand notices.
Not reporting Section 9(5) aggregator supplies at all.
Charging GST separately on aggregator orders (double taxation to the customer).
Ignoring the reverse charge on commercial rent from an unregistered landlord.

Get the rest of your paperwork right

GST is one of four registrations a kitchen needs. See the full list in cloud kitchen licence and legal requirements and apply for your food licence via our FSSAI guide.

This is general information, not tax advice. Rates and thresholds change — confirm current provisions with a chartered accountant before filing.

GST for Restaurants & Cloud Kitchens, Explained Simply