GST Registration for Restaurant Business: Complete Guide

Opening or formalizing a restaurant business in India means dealing with GST sooner rather than later, and the rules governing exactly how much tax you charge, which scheme you fall under, and even who actually remits the tax on your aggregator orders have specific, current answers that go beyond the generic advice most people rely on. Whether you run a single dine-in restaurant, a quick-service outlet, or a multi-location chain, understanding GST registration, when it’s mandatory, which scheme to pick, and how the process actually works, is essential to staying compliant and avoiding penalties that can quietly eat into your margins.

Is GST Registration Mandatory for Your Restaurant?

GST registration becomes mandatory for a restaurant business once annual turnover crosses ₹20 lakh in most states (₹10 lakh in some special category states). However, many restaurant owners register voluntarily even before hitting this threshold, because GST registration is often required to:

Get listed on food delivery platforms like Zomato and Swiggy, which typically insist on a valid GSTIN before onboarding.
Open current bank accounts with certain banks that require GST registration for business accounts above a certain scale.
Build credibility with corporate clients for catering or bulk orders, who often need GST-compliant invoices for their own tax filings.

If your restaurant is already operating and inching toward the turnover threshold, it is far better to register proactively than to realize mid-year that you have crossed the limit without registering, which can trigger penalties and interest on unpaid tax.

Regular Scheme vs Composition Scheme, Which Should Your Restaurant Choose?

This is one of the most important decisions a restaurant owner makes at the time of GST registration, and it has long-term implications for pricing, compliance burden, and input tax credit.

Regular GST Scheme: Under this scheme, restaurants typically charge 5% GST on food bills (without claiming input tax credit, for most standalone restaurants) or 18% if the restaurant is located within a hotel charging room tariffs above a specified threshold. Regular scheme businesses must file monthly or quarterly returns and maintain detailed transaction records.

Composition Scheme: This is a simplified scheme meant for small restaurants with turnover up to ₹1.5 crore. Under composition, restaurants pay a flat 5% GST on turnover (not itemized per transaction) and file quarterly returns with much lighter compliance. However, composition scheme restaurants cannot issue tax invoices with GST charged separately to customers, cannot claim input tax credit, and cannot supply through certain e-commerce operators in some circumstances, a significant limitation if you plan to list on food delivery apps.

Most growing restaurants that want to be listed on Zomato, Swiggy, or similar platforms end up needing the Regular Scheme, since many aggregators require standard GST-compliant billing capability. That said, this isn’t an absolute rule for every aggregator relationship, and composition scheme restaurants planning to onboard with a delivery platform should confirm the platform’s specific GSTIN scheme requirements before assuming they need to switch, the answer has shifted over time as aggregators have adjusted their own onboarding compliance checks.

Documents Required for Restaurant GST Registration

PAN card of the business entity and the proprietor/partners/directors.
Aadhaar card of the applicant.
Proof of business constitution, partnership deed, incorporation certificate, or proprietorship declaration.
Proof of principal place of business, ownership document, rent agreement, or utility bill, along with a No Objection Certificate from the property owner if rented.
Bank account details, a cancelled cheque, bank statement, or passbook first page.
Digital signature (for companies and LLPs; not mandatory for proprietorships and partnerships, which can use e-verification via Aadhaar OTP).
Photograph of the proprietor, partners, or directors.
Letter of authorization, if the application is being filed by an authorized signatory rather than the proprietor directly.

Step-by-Step GST Registration Process for Restaurants

Step 1: Visit the GST Portal

Head to the official GST portal and select “New Registration” under the Services tab. You will need a valid PAN, mobile number, and email ID to begin.

Step 2: Generate TRN (Temporary Reference Number)

After entering basic details and verifying via OTP sent to your mobile and email, you receive a Temporary Reference Number, which you use to continue the application in Part B.

Step 3: Fill Part B of the Application

This is the detailed section where you provide business details, principal and additional places of business (relevant if your restaurant has a separate central kitchen or multiple outlets), details of promoters/partners, and your authorized signatory.

Step 4: Upload Documents

All the documents listed above need to be uploaded in the prescribed format, with file size restrictions that applicants frequently overlook, leading to upload failures and resubmissions.

Step 5: Choose Your Tax Scheme

At this stage, you declare whether you are opting for the Composition Scheme or Regular Scheme. This choice should be made carefully, considering your growth plans and whether you intend to be on food delivery platforms.

Step 6: Verification and ARN Generation

Once submitted, you verify the application using either a Digital Signature Certificate or Aadhaar-based e-signature. This generates an Application Reference Number you can use to track your application status.

Step 7: GSTIN Issuance

If the application is approved, usually without requiring additional clarification if documents are complete and consistent, you receive your GST Identification Number (GSTIN) and registration certificate, typically within 3 to 7 working days.

Common Issues Restaurant Owners Face During GST Registration

Mismatch between declared business address and utility bill/rent agreement, a very frequent cause of application rejection or query notices.
Confusion over Composition vs Regular Scheme, leading to restaurants registering under Composition and then needing to switch to Regular Scheme later when they want to join food delivery platforms, which involves additional paperwork and a waiting period.
Incorrect HSN/SAC codes declared for the type of food service offered, which can create issues during return filing later.
Multiple outlets not properly declared as additional places of business, causing compliance gaps when expanding to new locations.

GST Rates Applicable to Restaurants, A Quick Reference

Standalone restaurants (AC or non-AC, no liquor license): 5% GST, without input tax credit.
Restaurants within hotels with room tariff above ₹7,500 per night: 18% GST, with input tax credit available.
Outdoor catering services: 5% GST generally, though specific circumstances can alter this.
Takeaway and delivery-only operations: Generally taxed the same as the restaurant’s dine-in rate, based on current classification.

Tax rates and thresholds are periodically revised by the GST Council, so it’s worth confirming the current applicable rate at the time of registration and billing setup rather than relying solely on historical figures.

GST on Zomato and Swiggy Orders, Who Actually Pays?

This is one of the most misunderstood areas of restaurant GST, and it matters directly if you’re planning to list on food delivery platforms. Since January 1, 2022, Zomato and Swiggy have been classified as Electronic Commerce Operators (ECOs) under Section 9(5) of the CGST Act for restaurant food delivery. Under this provision, the GST liability on orders placed through these platforms shifts from the restaurant to the platform itself.

In practice, this means: when a customer orders through Zomato or Swiggy, the platform collects the 5% GST from the customer and deposits it directly with the government, your restaurant does not collect or remit this specific tax on those orders. The platform pays this liability entirely in cash, and notably, no input tax credit can be used to offset it, which is a cost the platform absorbs rather than your restaurant.

For your own GST return filing, orders routed through these aggregators under Section 9(5) are reported differently from your direct sales, they go in a specific table of your GSTR-3B (Table 3.1.1(ii)) showing the taxable value only, with no tax payable shown against them on your side, since the platform reports and pays that portion separately. This distinction matters for restaurant owners reconciling their monthly GST filings against aggregator payout statements, since a mismatch in how these are categorized is a common source of return filing errors.

This mechanism applies to standalone restaurants and cloud kitchens. It does not apply to restaurants operating within hotels where room tariff exceeds ₹7,500 per night, those establishments continue to handle their own GST liability directly, including on any aggregator-routed orders, under the standard 18% rate applicable to specified premises.

E-Invoicing, Does Your Restaurant Need to Comply?

E-invoicing under GST is mandatory once a business’s aggregate turnover crosses ₹5 crore in any financial year from FY 2017-18 onwards, note that once you cross this threshold even once, the requirement applies going forward, it isn’t reassessed year to year. For restaurants, this means B2B invoices, exports, and certain government supplies need to be reported through the Invoice Registration Portal (IRP) to generate a valid e-invoice with a unique Invoice Reference Number (IRN) and QR code.

Most standalone restaurants serving walk-in and delivery customers (B2C transactions) are less affected in practice, since e-invoicing specifically targets B2B transactions, but a restaurant doing meaningful catering business for corporate clients, or supplying packaged food products to other registered businesses, should check whether their B2B transaction volume and overall turnover brings them into e-invoicing scope. Multi-outlet restaurant chains with combined turnover crossing ₹5 crore across all locations should assume e-invoicing applies, even if individual outlets operate under separate GST registrations within the same state.

Filing Returns After Registration

Once registered, restaurants under the Regular Scheme typically file GSTR-1 (sales details) and GSTR-3B (summary return with tax payment) on a monthly or quarterly basis depending on turnover, while Composition Scheme businesses file a simpler quarterly statement (CMP-08) and an annual return. Falling behind on return filing, even when there’s no tax liability for a given period, attracts late fees that accumulate daily, so building a consistent filing habit from day one matters.

Frequently Asked Questions

Can a small restaurant below ₹20 lakh turnover register for GST voluntarily? Yes, voluntary registration is allowed and is often necessary for restaurants that want to list on food delivery platforms even before crossing the mandatory threshold.

Can I switch from Composition Scheme to Regular Scheme later? Yes, but it involves filing a specific intimation form, and typically you can only make this switch at the start of a financial year, so timing your decision matters.

Do cloud kitchens need the same GST registration as dine-in restaurants? Yes, the underlying GST registration process is the same, though cloud kitchens should pay particular attention to their classification since they often operate purely through aggregator platforms.

What happens if I don’t register for GST despite crossing the turnover threshold? You become liable for the tax that should have been collected, plus interest and penalties, and you risk your food delivery platform accounts being suspended pending compliance.

If Zomato/Swiggy pay GST on my orders through their platform, do I still need my own GST registration? Yes, absolutely. Section 9(5) only shifts the tax liability for that specific transaction value; your restaurant still needs its own GST registration to be onboarded by the platform in the first place, and you still handle GST normally for dine-in, takeaway, and any direct-order sales outside the aggregator.

We Handle Your Restaurant’s GST Registration End-to-End

Deciding between Composition and Regular Scheme, assembling the right documents, and navigating the GST portal’s quirks takes time most restaurant owners simply don’t have while running day-to-day operations. We register restaurants for GST across India, advise on the right scheme for your growth plans, and make sure your GSTIN is ready in time for your OTA and food delivery platform listings.

Call or WhatsApp us today to get your restaurant’s GST registration moving without the guesswork.