GST Filing for Restaurants
GST compliance for restaurants, cafés and cloud kitchens — dine-in, takeaway and delivery apps, handled correctly.
In a typical month, you deal with
- Daily dine-in and takeaway sales
- Orders through food delivery apps
- Supplies bought every day
- Rent, utilities and staff costs
- Sometimes, a bar counter
How GST works for restaurants
Most restaurants charge 5% GST and cannot claim input tax credit on their purchases. Restaurants inside hotels where the declared room tariff is above ₹7,500 a night — “specified premises” — charge 18% and can claim credit. When customers order through food delivery apps, the app pays GST on those orders, so you must not pay it again, but you still report those sales. Alcohol is outside GST and taxed by the state, so it is kept separate.
What data should you maintain?
- Daily sales summary — dine-in, takeaway, delivery
- Delivery app order and payout statements
- Own website or phone-order sales
- Payment-mode reports (UPI, card, cash)
- Food and beverage supplies
- Packaging material
- Rent and utility invoices
- Equipment and kitchen purchases
- GSTR-1 (with app orders reported separately)
- GSTR-3B
- GSTR-2B (for restaurants that claim credit)
- Composition returns, if on the scheme
Your monthly GST workflow
- Daily sales
- Delivery app statements
- Split app orders
- Purchase bills
- Rent & RCM check
- GSTR-1
- GSTR-3B
- Filing
- GST report
Common GST mistakes
GST on orders placed through delivery apps is paid by the app. Paying it again on the same sales is money lost.
At the 5% rate, input tax credit isn’t available. Claiming it leads to reversal with interest.
Charging 18% when 5% applies, or the other way round, causes customer complaints and tax gaps.
Liquor is outside GST and taxed by the state. Billing it with food creates errors in both.
Commercial rent paid to an unregistered landlord can attract GST under reverse charge for registered businesses.
Commissions, refunds and cancellations in app statements must be matched with your sales records.
What should you send every month?
Choose your business type. This is the data a good GST process starts with.
Your monthly GST data checklist
Download this checklist
Get it as a file to share with your team or accountant.
How Tax Paramarsh helps
- Split your sales into dine-in, takeaway and app orders
- Reconcile delivery app statements every month
- Check reverse charge on rent and other services
- Prepare GSTR-1 and GSTR-3B — you approve, we file
- Compare the composition scheme with regular GST for you
Pricing
Most restaurants fit the Basic (₹299/month) plan; busy outlets with several apps move to Standard (₹599/month). Composition filing is quoted on request. Plus 18% GST. Basic covers up to 10 invoices a month, Standard 11–50 and Pro 51–200 — with turnover up to ₹50 lakh for Basic and Standard, and ₹1 crore for Pro. Pay yearly and get 12 months for the price of 10.
See all GST plans →Common questions
What GST rate does a restaurant charge?
Most restaurants charge 5% without input tax credit. Restaurants in hotels where the declared tariff of a room is above ₹7,500 a night charge 18% with input tax credit.
Do I pay GST on Swiggy and Zomato orders?
No. For restaurant services supplied through these apps, the app collects and pays the GST. You report those sales separately, but don’t pay tax on them again.
Can a restaurant opt for the composition scheme?
Yes, with turnover up to ₹1.5 crore (lower in some states), at 5% of turnover with quarterly payment. You cannot charge GST to customers or claim credit, and you cannot serve alcohol under it.
Is GST charged on alcohol?
No. Alcohol for human consumption is outside GST; the state levies VAT or excise on it. Keep it billed and recorded separately.
Do I need FSSAI as well as GST?
Yes — FSSAI registration or a licence is a separate requirement for every food business. We can handle both.
Often needed alongside GST
GST for other industries
Let us handle your restaurant’s GST every month.
Accurate data, reconciled credit, filed on time.