Restaurant bill, service charge and tip calculator
An Indian restaurant bill can carry three add-ons on top of the food: a service charge (typically 5–10%), GST, and a voluntary tip. Many diners do not know which of these are compulsory, how GST interacts with the service charge, or how to split the total fairly among friends. This calculator lays it all out and divides the bill per person with optional rounding to the nearest ₹10 so UPI transfers are tidy.
How the bill is built
- Food & beverage — the menu amount
- Service charge = Food × SC % (if the restaurant levies it)
- GST = (Food + Service charge) × GST rate — GST applies to the service charge too when it is part of the bill
- Tip = Food (or total) × tip %
- Per person = Grand total ÷ number of people
Worked example
Four friends order food worth ₹2,400. The restaurant adds 10% service charge (₹240). GST at 5% on ₹2,640 = ₹132. Bill = ₹2,772, or ₹693 each — rounded up to ₹700 per person for convenience. If the group decides to pay no extra tip because service charge was already levied, that is the final figure. Had they removed the service charge, GST would be ₹120 and the bill ₹2,520 (₹630 each).
GST rate on restaurants (FY 2025-26)
Standalone restaurants, cafés, dhabas and cloud kitchens charge 5% GST without input tax credit. Restaurants inside hotels where any room tariff exceeds ₹7,500 per night ("specified premises") charge 18% with ITC. Alcohol is outside GST and attracts state VAT/excise, which is why liquor appears separately on the bill. Food delivery through Zomato/Swiggy also carries 5% collected by the platform.
Is service charge compulsory?
No. The Central Consumer Protection Authority guidelines of 4 July 2022 state that restaurants cannot add a service charge automatically or by default, cannot collect it under any other name, and cannot deny entry or service based on it. It is a voluntary payment by the customer. If it is added without consent you may ask for it to be removed and can complain on the National Consumer Helpline (1915). The Delhi High Court upheld these guidelines in March 2025.
Tipping etiquette
Where no service charge is levied, 5–10% is customary in India for sit-down dining; in cafés and dhabas a small round-up is normal. Use the slider to see how 5%, 10% or 15% changes the total and the per-head share, and choose whether the tip is on the food amount (standard) or the full bill.
Frequently Asked Questions
Is service charge mandatory in Indian restaurants?
No. Under CCPA guidelines (2022) service charge is voluntary and cannot be added automatically. You can request its removal.
Is GST charged on service charge?
Yes. When service charge forms part of the bill, GST is levied on food plus service charge as the total consideration for the supply.
What is the GST rate on a restaurant bill?
5% for most restaurants (no input credit). 18% in restaurants located in hotels with room tariff above ₹7,500. Alcohol is charged state VAT instead.
Should I tip if service charge is already added?
Usually not — the service charge is meant for staff. A tip on top is purely optional for exceptional service.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.