A cafe that serves coffee, sandwiches and desserts to be consumed on the spot or carried away supplies restaurant service under SAC 996331, taxed at 5% without input tax credit. The cafe bill should show customised drinks and add-ons as separate priced lines, the order token number, the FSSAI number, and any packaged retail goods such as bagged coffee beans billed separately under their own HSN, because shelf goods are a supply of goods rather than cafe service.
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Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a cafe invoice needs
Order token or pickup number
Cafes run on counter ordering, so the token printed on the bill is what the barista calls out. Linking it to the bill also helps trace a wrong drink back to the order when a customer complains.
Customisation and add-on lines
Extra shot, oat milk or whipped cream changes the price. Listing each add-on with its own amount keeps the bill transparent and stops staff from discounting quietly by skipping paid modifiers.
Cup size or variant
Regular, medium and large carry different prices. Printing the variant beside the drink name avoids disputes and lets you analyse which sizes sell, without affecting the 5% service rate.
Separate section for retail goods
Bags of roasted coffee, tea tins or mugs on a retail shelf are goods with their own HSN and rate. Keep them in a separate block so the cafe-service and goods totals are not blended.
Loyalty points or wallet redeemed
If a stamp card or app wallet reduces the amount, show it as a discount line. The bill must make clear whether GST was computed on the value before or after the loyalty discount.
FSSAI number
As a food business, a cafe must display its FSSAI licence or registration number on the bill. Chains with several outlets should print the number belonging to the specific outlet that served the order.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
A drink brewed and handed over by a barista is a restaurant-type service even when the customer walks away with it, because SAC 996331 expressly covers takeaway. A sealed pack of roasted beans lifted off a retail shelf is different: it is a sale of goods falling under heading 0901, which sits in the 5% schedule of Notification 9/2025-Integrated Tax (Rate). The rates happen to match in this example, but the classification still matters because goods and services are reported in separate tables and a pack of merchandise such as a ceramic mug carries a different goods rate altogether.
No input tax credit at 5%
The cafe service rate of 5% is available only if the cafe does not claim input tax credit on the goods and services used to supply it, including espresso machines, rent and milk purchases. Cafes are often tempted to claim credit on expensive equipment, but doing so while charging 5% on output is not allowed. If you also sell retail goods, apportion common credits and claim only the share that relates to the taxable goods, keeping working papers for the apportionment.
Aerated drinks in the chiller
If a cafe sells sealed cans or bottles of sweetened or flavoured aerated drinks as goods from a chiller, those goods fall in Schedule III of Notification 9/2025-Integrated Tax (Rate) at 40%. When the same soft drink is poured and served as part of a meal at the table, it is part of the cafe service at 5%. Train counter staff to bill a grab-and-go can under the retail block, not as a cafe item, so that the shelf sale carries its correct rate.
Composition option for small cafes
A small cafe can choose the composition scheme for restaurant service and pay a fixed percentage of turnover. It then issues a bill of supply with no GST shown, cannot collect tax from customers, and must print the composition declaration. A cafe that also sells inter-state online, for example coffee beans shipped to other states, should check eligibility first, since inter-state outward supply of goods can bar a business from composition.
Common billing mistakes
✕Billing a pack of retail coffee beans as 'cafe service' under 996331, mixing goods and services into one figure in the returns.
✕Claiming input tax credit on a new espresso machine while charging only 5% on cafe service.
✕Leaving paid add-ons off the bill so the barista can give them free, which also understates the taxable value.
✕Selling chilled cans of cola from a display fridge at 5% as part of cafe service instead of at the goods rate for aerated drinks.
Cafe GST invoice: FAQ
Is a takeaway coffee taxed differently from one consumed inside?
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No. Restaurant service under SAC 996331 includes takeaway, so a coffee in a paper cup and one in a mug at a table both carry 5% GST without input tax credit, provided the cafe is not in specified premises.
Can a cafe charge 18% GST to claim credit on equipment?
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Only a cafe located in specified premises, meaning a hotel where accommodation is charged above Rs 7,500 per unit per day, can use 18% with credit. A stand-alone cafe in a mall or high street must bill at 5% and cannot declare itself specified premises.
Do I need separate invoices for merchandise?
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Not separate invoices, but separate lines and HSN codes. One bill can carry a cafe-service block under 996331 and a goods block for beans or mugs, each with its own rate and tax amount.
What should a cafe print on a bill for a corporate customer?
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Ask for the company's GSTIN, legal name and state, and print them on the invoice. The company still cannot claim input tax credit on restaurant service, but it may need the GSTIN on record for its expense claims.