Gst Registration For Restaurants

India's economy is growing strongly and the introduction of

GST will power growth for years to come. With urbanisation, the culture of eating out is increasing every day and becoming mainstream. In this article, we provide a detailed guide to Gst Registration For Restaurants. Restaurants, like most businesses with a turnover of more than Rs.20 lakh, will require GST Registration in most states. Restaurants in special category states will require GST registration if the annual aggregate turnover crosses Rs.10 lakhs. Any restaurants below this turnover can opt-out from GST Registration, which shall nullify them from charging GST from customers.

FSSAI Registration

In addition to GST registration, all restaurants will require

FSSAI registration from the Food Standard and Safety Authority of India. FSSAI registration is mandatory for all persons and entities involved in the food business. Click here to read on GST Composition Scheme for Restaurants

Process of GST Registration

To obtain GST registration for a restaurant, you will have to complete the GST registration application in Form GST REG – 01. The GST registration process can be initiated on the

GST Portal, by filling basic details like your mobile number and E-mail address and most importantly, your PAN. You have to enter the varied OTP's sent to your mobile number and E-Mail address, followed by submission of documents, after which the application will be sent to the concerned authorities for verification. The authorities will verify your documents and provide GST registration certificate.

GST Rate for Restaurants

Stand-alone restaurants, air-conditioned or otherwise, will attract a rate of 5%. Hotels with room tariffs of an amount of less than 7500 will attract a rate of 5%, while tariffs equal to or more than that will attract 18% of GST. Know more about

GST rate for restaurants.

GST Composition Scheme

Restaurants can register under the GST composition scheme if the aggregated annual turnover received less than Rs.100 lakh. Restaurants registered under the GST composition scheme will have to pay GST at the rate of 5% of aggregate turnover, divided into 2.5% as SGST and 2.5% as CGST. Aggregate turnover will be computed on the basis of turnover on an all India basis and will include value of all taxable supplies, exempt supplies and exports made by all persons with the same PAN, but excludes inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess. Further to it, restaurants availing this scheme needs to ensure that GST is charged on the reverse charge basis on any goods received from an unregistered supplier. Reverse charge is a mechanism where the tax applies to the receiver and not the supplier.

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Frequently Asked Questions

Common questions about GST Registration for Restaurants in India.

Restaurants with an annual aggregate turnover of more than Rs.20 lakh will require GST registration in most states. For special category states, the threshold is Rs.10 lakh.

Yes, in addition to GST registration, all restaurants will require FSSAI (Food Standard and Safety Authority of India) registration, as it is mandatory for all entities involved in the food business.

To obtain GST registration for a restaurant, you will have to complete the GST registration application in Form GST REG – 01 on the GST Portal. This involves submitting basic details, documents, and awaiting verification from the concerned authorities, who will then issue the GST registration certificate.

Stand-alone restaurants, whether air-conditioned or not, will attract a GST rate of 5%.

Hotels with room tariffs of an amount less than Rs. 7,500 will attract a GST rate of 5%.

Hotels with room tariffs equal to or more than Rs. 7,500 will attract a GST rate of 18%.

Restaurants with an aggregate annual turnover of less than Rs. 100 lakh can register under the GST composition scheme. They will have to pay GST at the rate of 5% of aggregate turnover, divided into 2.5% as SGST and 2.5% as CGST.

Aggregate turnover is computed on an all-India basis and includes the value of all taxable supplies, exempt supplies, and exports made by all persons with the same PAN, but excludes inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess.

Restaurants availing the GST composition scheme need to ensure that GST is charged on the reverse charge basis on any goods received from an unregistered supplier. Reverse charge means the tax applies to the receiver and not the supplier.

No, the article does not indicate that FSSAI registration is a prerequisite for GST registration for restaurants. It states that both FSSAI registration and GST registration are mandatory requirements for restaurants.