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).

Correction to the 18% reply: outdoor catering is generally 5% without ITC.

• Notf 11/2017-CT(R), Sl. 7(iv) and (v): outdoor catering (weddings, events, functions) is 5% (2.5% CGST + 2.5% SGST) without ITC. This has applied since 1 October 2019, when outdoor catering was aligned with restaurant rates.

• Exception: outdoor catering supplied at "specified premises" (hotels where any room tariff exceeded Rs 7,500 in the preceding FY), or by a caterer who supplies hotel accommodation above Rs 7,500, is 18% with ITC.

• A composite supply of catering plus décor, tent and event management is taxed at the rate of the principal supply. If event management is the principal supply, it is 18% (SAC 998596). Price and bill catering separately if you want the 5% rate on food.

• Catering to educational institutions (mid-day meals, school canteens for students) can be exempt (Notf 12/2017, Sl. 66).

• Recipient's ITC: food and outdoor catering ITC is blocked (Sec 17(5)(b)(i)) except for the same line of business.