GST Registration for Restaurants & Food Businesses
Restaurants, cafes, and cloud kitchens need GST registration once turnover crosses ₹40 lakh (₹20 lakh for special-category states) — or earlier if you opt for voluntary registration to work with food-delivery platforms like Zomato and Swiggy, which typically require a GSTIN for onboarding.
5% vs 18% GST rate
Most standalone restaurants pay 5% GST without ITC; restaurants within higher-tariff hotels pay 18% with ITC available.
Food delivery platform GST
Since 2022, food-delivery aggregators like Swiggy and Zomato collect and deposit GST on restaurant sales made through their platform in certain cases — we help you reconcile this correctly.
Composition scheme option
Small restaurants under ₹1.5 crore turnover can opt for the Composition Scheme for simpler quarterly filing at a flat rate.
Frequently Asked Questions
Standalone restaurants (not part of a hotel with room tariff above the notified threshold) typically pay GST at 5% without ITC. Restaurants inside high-tariff hotels attract 18% with ITC available. Rates can be revised by the GST Council, so we confirm the applicable rate for your specific setup during onboarding.
The Composition Scheme lets small taxpayers (turnover up to ₹1.5 crore for goods, ₹50 lakh for services in most states) pay GST at a lower flat rate on turnover instead of the standard rate, and file quarterly returns instead of monthly. In exchange, they cannot claim input tax credit or charge GST separately to customers. It suits small retailers, traders, and restaurants with straightforward operations.
Related Reading
For the full GST registration walkthrough — eligibility, documents, fees, and penalties — see our main GST Registration guide.
Talk to a GST Expert
Free consultation. We respond fast and file within 24 hours of receiving your documents.