Impact of GST Taxation on Restaurants | An Easy Guide

The GST reform back in 2017 has brought many changes in the tax system for restaurants and food joints. Previously, owners of the food business were burdened with several taxes right from the purchase of raw materials to the preparation of the final product. 

Restaurants with a turnover of more than Rs.20 lakhs will require GST Registration. Restaurants located in special category states need GST registration if the annual turnover crosses Rs.10 lakhs. Any restaurant below this turnover can opt-out from GST Registration. Restaurants registered under the GST regime need to pay GST at the rate of 5% of aggregate turnover, 2.5% as SGST, and 2.5% as CGST.

Another important point to remember is that GST registration is state-specific, so there will be separate state-wise registration for food joints in different states. If there are multiple outlets in the state itself, then one GSTIN is enough. 

The documents required for GST registration for a food business

• Photo of the restaurant owner
• Picture of Managing partner in case of a partnership
• Partnership deed in case of a partnership 
• Evidence of the location of Restaurant (Electricity Bill, property tax receipt/ registry documents of the place, rent agreement, electricity bill with a copy of NOC)
• Bank Documents-Scanned copy of bank statement/bank passbook or scanned copy of the canceled cheque.

How can we help you?

Online Legal India™ has a team of business taxation experts who help you to get GSTIN for your food business and file GST return for the same. Already being blessed with more than 1,20,000 GST registered consumers in India for its quality of service, the team is known for its easy and quick business assistance.

Apart from tax registration, all the restaurants need FSSAI registration that is also available on Online Legal India™. So, what you need for your food business/restaurant is right here at your fingertips.