So I have eaten out several times in India and every time the amount of tax on the final bill seems to be different.

Sometimes it is 9.5% other times two lots of 2.5% (cGST & sGST?)

Also on a couple of occasions when I also had a beer the tax was 25% and 20% + 11% (on the VAT)

Let's say I order Rs1000 of food off the menu and a Rs100 beer.

What should the tax be on that restaurant bill?


Generally, the GST rate is 5% (2.5% state and 2.5% center) as you noticed.

In November of 2017, the GST council met and decided to make changes to the original restaurant tax rates. During this meeting, the council set the GST rate at just 5% for most restaurants, regardless of AC and liquor licenses

I'm not sure about the 9.5% number, but restaurants in high end hotels will charge 18%

If you run a restaurant in a hotel, however, the rules might be different. For restaurants in hotels with standard room rates of RS7500 per night or higher, the GST is set at 18%. The 18% rate also applies to outdoor catering.

The alcohol rate might depend on the state.

If you serve alcohol in your restaurant, your taxes are slightly more complicated. The GST regime does not include liquor. That means that when a diner orders a drink, you need to tax that drink at different rates. Depending on where your restaurant is in India, that could include VAT and any other applicable state taxes. These taxes must only be applied to the alcohol part of the bill, while the GST must only be applied to the food section of the bill.

The above quotes are from https://quickbooks.intuit.com/in/resources/gst-center/gst-restaurant-owners/

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