Industry Playbook · Restaurants

    GST Registration for Restaurants

    Restaurants and cloud kitchens attract 5% GST without ITC (composition-like) or 18% with ITC (only for restaurants inside specified hotel premises). GSTIN is mandatory above ₹20L services turnover or from day one on Swiggy / Zomato.

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    Why Restaurants need GST registration

    • Enterprise and B2B clients require a valid GSTIN before onboarding — restaurants without GST lose deals.
    • Input Tax Credit (ITC) on office rent, software, equipment and marketing spend directly reduces tax outflow.
    • Voluntary registration below the ₹20L / ₹40L threshold is common when serving inter-state or international clients.
    • Payment aggregators (Razorpay, Stripe) and marketplaces auto-collect TCS — GSTIN is needed for reconciliation.
    • Compliance readiness for investor due diligence, bank loans and government tenders.

    Scheme choice for Restaurants

    Regular scheme at 5% (no ITC) or 18% (with ITC, only for hotels ≥ ₹7,500/day tariff).

    HSN / SAC codes typically used

    CodeDescriptionGST rate
    996331Restaurant services (5%)5%
    996334Outdoor catering18%
    996311Hotel accommodation12% / 18%
    1905Bakery products5% / 18%
    2201Bottled water18%

    Top 5 pain points Restaurants face

    • 1Swiggy / Zomato deduct GST directly since Jan 2022 — restaurant collects only from dine-in / direct orders.
    • 2Alcohol served is out of GST (state excise) — cannot claim ITC on alcohol procurement.
    • 3Packaged food supplied is taxable at product HSN — different from restaurant service.
    • 4Party bookings / catering are taxable at 18% (SAC 996334) — different from regular restaurant service.
    • 5Composition-scheme restaurants (turnover < ₹1.5Cr) pay 5% but cannot claim any ITC.

    ITC strategy for Restaurants

    • 5% restaurants — no ITC allowed. Focus on margin control on non-GST inputs.
    • 18% hotel-restaurants — full ITC on rent, kitchen equipment, packaging.
    • Composition scheme — simplest but no ITC and no inter-state supply.

    Compliance calendar

    Return / formDue dateNotes
    GSTR-111th of next monthOutward supply — invoice-wise details.
    GSTR-3B20th of next monthSummary return + tax payment.
    GSTR-931 December (next FY)Annual return (turnover > ₹2Cr).
    LUT (if exports)Annually in AprilZero-rated export enabler.

    Start GST registration for your restaurants business

    Flat ₹999. CA-led. GSTIN in 3–7 days. First return filed free.

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    Related Guides

    Where Restaurants register GST most

    City-specific GST Registration guides for restaurants — jurisdiction, address-proof nuance and on-ground pickup, priced flat ₹999.

    GST Registration for Restaurants — FAQs

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    Last Updated
    15 September 2026

    Content refreshed against the latest CBIC / CBDT / MCA notifications and portal changes.

    Reviewed by Chartered Accountant
    CA Ravi Sharma

    Chartered Accountant · ICAI Member · 12+ years in Indian tax & compliance

    Update History
    1. 15 September 2026
      Reviewed rates, forms and portal workflow for GST Registration by Industry. Verified against latest CBIC/CBDT notifications.
    2. 10 January 2026
      Refreshed FAQ set, added new penalty examples and jurisdiction notes.
    3. 05 October 2025
      Structural rewrite for EEAT — added expert commentary, playbooks and process timeline.