Dining Just Got Cheaper: Reduced GST + Credit Card Dining Offers

GST Revolution Makes Restaurant Bills Lighter

Your favourite restaurant bill just became significantly cheaper. From 22 September 2025, the government introduced a flat 5% GST on standalone restaurants, food courts, and takeaways. Previously, you paid 12–18% GST depending on whether the restaurant had air conditioning or not.

This change affects millions of urban Indians who spend ₹2,000 to ₹5,000 monthly on dining out. According to industry data, the average Indian family now saves ₹520 monthly on restaurant taxes alone. When combined with credit card dining offers, total savings can reach impressive levels.

The reform simplifies compliance for restaurants whilst making dining more affordable for consumers. Premium hotel restaurants with room tariffs above ₹7,500 per night still charge 18% GST, but most standalone establishments benefit from the reduced rate.

Real Money Saved: GST Calculation Breakdown

Let’s examine exactly how much you save with the new GST structure:

Old GST structure (Pre-September 2025)

• Non-AC restaurants: 12% GST
• AC restaurants: 18% GST
• Hotel restaurants: 18% GST

New GST structure (Post-September 2025)

• Standalone restaurants: 5% GST
• Food courts and takeaways: 5% GST
• Premium hotel restaurants (room >₹7,500): 18% GST

Sample Bill Comparison

Credit Card Dining Offers Amplify Your Savings

Dining offers on credit cards have become increasingly competitive as banks target food-loving urban Indians. Premium credit cards now provide:

• 10–25% instant discounts at partner restaurants
• 5–10X reward points on dining spends
• Cashback offers ranging from 5% to 15%
• Buy-one-get-one deals during promotional periods

The Airtel Finance Credit Card offers attractive cashback on dining, making it an ideal choice for regular restaurant visitors. Urban professionals particularly benefit from these structured reward programmes.

Stacking Benefits: The Maximum Savings Strategy

Here’s how savvy diners combine GST savings with credit card dining offers:

• Step 1: Choose restaurants with 5% GST (standalone establishments)
• Step 2: Check active credit card dining offers on your card’s app
• Step 3: Apply eligible discounts at payment
• Step 4: Earn additional reward points for future redemptions

Smart Dining Finance Options

For larger dining expenses, such as celebrations or business meals, consider flexible payment solutions. The Airtel Bajaj Finserv Insta EMI Card enables you to convert restaurant bills of ₹2,000 or more into easy monthly instalments.

EMI example:

• Family celebration bill: ₹12,000
• Convert to 6-month EMI: ₹2,000 per month
• No additional processing charges on select tenures

This approach helps manage cash flow whilst enjoying premium dining experiences. Business owners can also explore structured financing for client entertainment expenses.

Making Every Meal Count

The combination of reduced GST and strategic credit card dining offers represents genuine savings for Indian families. These aren’t marketing gimmicks—they’re real money back in your pocket.

Track your monthly dining expenses and calculate potential savings. Most urban families can save ₹3,000 to ₹8,000 annually through this dual approach. Use saved money for additional experiences, investments, or other financial goals.

Begin by reviewing your current dining habits and identifying restaurants that charge 5% GST. Then explore credit card options that align with your spending habits. The Airtel Thanks app makes tracking these offers simple and convenient.

Smart dining finance isn’t about spending more—it’s about spending smarter whilst enjoying the experiences you love. Explore Airtel Finance credit card offers for additional options.

FAQs

1. How much can I save with new GST rates and credit card dining offers?

Combined savings typically range from 20% to 28% per restaurant bill. A family spending ₹4,000 monthly can save ₹6,000–10,000 annually through strategic planning.

2. Do all restaurants charge 5% GST now?

Standalone restaurants, food courts, and takeaways charge 5% GST. Premium hotel restaurants with room tariffs above ₹7,500 per night still charge 18% GST.

3. Can I use multiple credit card dining offers simultaneously?

No, you can typically use only one credit card offer per transaction. However, you can combine GST savings with a single credit card discount for maximum benefit.

4. How do credit card dining offers affect my credit score?

Using credit cards responsibly for dining and paying bills on time actually improves your credit score, potentially qualifying you for better financial products and higher credit limits.

5. Are there any restrictions on credit card dining offers?

Most offers have monthly caps, minimum spend requirements, or specific restaurant partnerships. Check your card’s terms and conditions for detailed restrictions and eligibility criteria.