SAC Code 9963
Restaurant Services
SAC 9963 covers restaurant, catering, and food service. GST is 5% without ITC (most standalone restaurants) or 18% with ITC (restaurants in 5-star hotels, certain categories).
SAC Code
9963
GST Rate
5%
Preferred UQC
NOS
Rate details & exceptions
Special rate structure. Standalone restaurants (not in a 5-star+ hotel) → 5% without ITC. Restaurants in hotels with room tariff ₹7,500+ → 18% with ITC. Outdoor catering → 5% without ITC. Cloud kitchens → 5% without ITC. ITC blockage is significant — plan your supply chain accordingly.
What SAC 9963 covers
SAC 9963 applies to the following products and variants. If your item isn't in the list, consult a CA or search the CBIC HSN master for the exact sub-heading.
- Dine-in restaurants
- Takeaway / parcel services
- Cloud kitchens
- Food delivery (from restaurant)
- Outdoor catering services
- Quick service restaurants (QSR)
How to enter SAC 9963 on an invoice
On a GST-compliant invoice, add the following for each line item:
- SAC code:
9963 - Description: Restaurant Services (or your specific SKU name)
- UQC:
NOS - Quantity, rate per unit, taxable value
- GST rate: 5% (split as CGST + SGST for intra-state, or IGST for inter-state)
21bill auto-fills SAC 9963 and the 5% rate the moment you type "restaurant services" in the item description — so you don't memorise codes.
Questions people ask about SAC 9963
Is restaurant GST 5% or 18%?
5% on most standalone restaurants (no ITC). 18% only if you're in a hotel with room tariff ₹7,500+ (with ITC). The 'no ITC' part means you can't claim input credit on rent, electricity, or food purchases — a genuine cost you bake into menu pricing.
Do food delivery platforms (Swiggy, Zomato) change this?
Since January 2022, e-commerce operators like Swiggy/Zomato collect and pay GST directly on restaurant orders under Section 9(5) — restaurants don't separately charge GST on those orders. For your own direct takeaway / dine-in, normal 5% applies.
What about dessert shops, bakeries, sweet shops?
Sweet/dessert shops without seating arrangement are typically classified as trading (HSN 1905/1704) at 5% or 18% depending on product. With seating where customers consume on-premises, it becomes restaurant service at 5% without ITC. The 'consume here' service element is what triggers the restaurant classification.
Alcohol in restaurants — is GST applied?
No. Alcoholic liquor for human consumption is outside GST — charged under state VAT / excise. Your restaurant invoice will have two rate lines: GST 5% on food, state VAT on alcohol. GST-registered billing software (including 21bill) handles this split automatically.
Related codes
Related on 21bill
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Request access⚠️ This page is a working reference, not tax advice. GST rates and classifications change — confirm with your CA or the latest CBIC notification before filing. Last reviewed 21 April 2026.