Food and hospitality
A pizzeria prepares pizza to order, so dine-in, takeaway and its own home delivery are all restaurant service under SAC 996331 at 5% without input tax credit. Orders through delivery apps are taxed by the app under section 9(5). The bill should show pizza size, crust, extra toppings, combo deals, delivery address for own deliveries, and coupon discounts, and should carry the FSSAI number of the outlet that baked the order.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Margherita pizza, medium, thin crust | 996331 | 1 NOS | 349.00 | 349.00 | 5% |
| Farmhouse pizza, large, cheese burst | 996331 | 1 NOS | 599.00 | 599.00 | 5% |
| Extra topping - jalapenos | 996331 | 2 NOS | 50.00 | 100.00 | 5% |
| Garlic bread sticks | 996331 | 1 NOS | 129.00 | 129.00 | 5% |
| Less: promo discount | 996331 | 1 NOS | -100.00 | -100.00 | 5% |
| Taxable value | ₹1,077.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹53.88 | ||||
| Invoice total | ₹1,130.88 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: GST Invoice Format: How to Lay Out a Compliant Tax Invoice · Credit Note Under GST: When, How and By When to Issue It · POS Billing System: What It Does and How to Run It Daily
The September 2025 changes exempted pizza bread under heading 1905, which can confuse pizzeria owners. That exemption is for the plain bread base sold as goods. A pizza topped, baked and served or delivered by a pizzeria is restaurant service under SAC 996331, taxed at 5% without credit. Do not apply the nil rate to pizzas just because the base is exempt when sold on its own.
Section 9(5) makes the e-commerce operator liable for GST on restaurant service supplied through it. Orders placed on a food delivery app are taxed by the app, and the pizzeria does not charge GST again. Orders through the pizzeria's own website or phone line remain the pizzeria's liability, including the delivery charge, which is part of the same restaurant service.
Discounts given on the bill at the time of sale, such as coupon codes, reduce the taxable value under section 15 if they are shown on the invoice. Print the discount as a line or in the summary, and compute GST on the net amount. Discounts funded by an app on app orders are a matter between the app and the customer and do not appear on your own bill.
A franchised pizzeria pays royalty and marketing fees to the franchisor, which charges 18% on these services. Because the outlet charges 5% without credit, that tax is a cost. Make sure the franchisor's invoice carries your outlet's GSTIN and state, as a mismatch creates problems in the franchisor's returns even if you cannot claim the credit.
Pizza combos often include a soft drink. When the drink is served as part of the meal, the combo is one restaurant service at 5%. If the outlet also sells sealed bottles of aerated drinks from a fridge as stand-alone goods, those goods fall in the 40% schedule from 22 September 2025. Keep the two separate in your POS, and do not move combo drinks to the goods section just because the bottle is sealed when served.
Pizza served, taken away or delivered by a pizzeria is restaurant service at 5% without input tax credit. Pizza bread sold as plain bread is exempt.
For own delivery, the delivery charge forms part of the restaurant service and takes the same 5% rate.
The food delivery app pays GST on restaurant service supplied through it under section 9(5).
Not while it charges 5% without credit on restaurant service; the 18% charged on royalty becomes a cost.
A small pizzeria can choose composition for restaurant service within the limit, but not for supplies made through an e-commerce operator required to collect tax. Most pizzerias that rely on app orders stay in the normal scheme.
Yes. Size and crust explain the price and help resolve complaints about the order delivered.
If the bill was already issued and the amount is refunded or reduced, issue a credit note referencing the original bill and reduce the tax in the return for that month, instead of deleting the original bill from the system.
Sources: GST Council — Notification 11/2017-CT(Rate), consolidated (services rates, heading 9963) · GST Council — FAQs on decisions of the 56th GST Council · CBIC — Circular 164/20/2021-GST (cloud kitchens, ice cream parlours) · GST Council — Press release, 56th GST Council recommendations (Sept 2025)
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