GST RATE OF OUT DOOR CATERING

5% GST (without Input Tax Credit — ITC)

• This is generally the applicable rate for standalone outdoor catering services like weddings, corporate events, parties, etc., where the caterer does not claim ITC.

18% GST (with Input Tax Credit — ITC)

• If the outdoor catering is provided by a business that opts to claim ITC, the applicable rate becomes 18%.

• Many industry sources also treat outdoor catering under the 18% standard service rate when there is ITC eligibility.

Outdoor catering is classified as “catering service”, not restaurant service.

It includes:

• Preparation of food

• Transportation

• Serving staff

• Crockery & setup

• Event-based supply

Hence taxable at 18% with ITC benefit.

Outdoor catering services are taxed at 18% GST (SAC 9963) and the supplier CAN claim ITC on inputs used for the service. This is different from dine-in restaurant services, which are capped at 5% GST with no ITC. The distinction matters: if a business hires an outdoor caterer for an event, the caterer charges 18% and can offset input costs; the recipient business however cannot claim ITC on that catering bill (blocked under Section 17(5)). For a detailed breakdown of rates, ITC rules, and the hotel-room-tariff exception see [GST on Restaurant and Food Services 2026](https://taxgarden.in/blog/gst-on-restaurant-food-services-india-rates-rules-2026).