๐ GST Basics for Restaurants
GST (Goods and Services Tax) replaced VAT and service tax for restaurants in India. If your annual turnover exceeds โน20 lakh (โน10 lakh in special category states), GST registration is mandatory. Understanding your obligations prevents penalties and helps you claim input tax credits where applicable.
Key GST rates for restaurants (2026):
- 5% GST โ Restaurants (no ITC claim): dine-in, takeaway, delivery
- 18% GST โ Hotels with room tariff above โน7,500/night
- 0% GST โ Packaged foods sold at MRP (not restaurant-made)
- Composition Scheme โ 5% turnover tax for eligible small restaurants (simpler filing)
โ๏ธ CGST vs SGST: What's the Difference?
When your customer pays โน100 + 5% GST = โน105, the โน5 is split as:
- CGST 2.5% โ Central Government share
- SGST 2.5% โ State Government share
Both appear on the invoice. Both go into separate accounts but are filed together. Unavakam generates CGST + SGST split invoices automatically.
๐ Regular Scheme vs Composition Scheme
Regular Scheme (most restaurants):
- File GSTR-1 monthly (invoices issued)
- File GSTR-3B monthly (tax payment)
- Can claim Input Tax Credit on eligible purchases
- Suitable if turnover > โน1.5 crore or you have B2B clients
Composition Scheme (small restaurants):
- Pay 5% of quarterly turnover (no invoice-level tracking)
- File CMP-08 every quarter
- Cannot issue tax invoices (simplified billing)
- Cannot claim ITC
- Eligible if annual turnover < โน1.5 crore
๐ Filing Calendar for 2026
| Return | Frequency | Due Date |
|---|---|---|
| GSTR-1 | Monthly | 11th of following month |
| GSTR-3B | Monthly | 20th of following month |
| GSTR-9 | Annual | 31st December |
| CMP-08 (Composition) | Quarterly | 18th of month after quarter |
๐ค How Unavakam Automates GST Compliance
-
Auto-calculates tax on every bill Enter your GST rate once during setup. Every bill automatically splits into base amount + CGST + SGST. No manual calculation ever.
-
Generates GST-compliant invoices Every bill includes: GSTIN, invoice number, HSN/SAC code, item-wise tax, and total. Ready for B2B sharing or customer records.
-
Monthly GST summary report At month-end, download the GST Summary Report from Reports โ Tax. It shows total taxable value, CGST, SGST, and total tax collected โ everything your CA needs for GSTR-3B filing.
-
Invoice-wise export for GSTR-1 Download the invoice list in CSV format. Share directly with your CA or upload to the GST portal for GSTR-1.
๐ก Common GST mistakes restaurants make:
- Not registering even after crossing the โน20 lakh threshold
- Filing late and accumulating penalties (โน50โโน200/day per return)
- Using the wrong GST rate (5% vs 18% confusion)
- Missing the annual GSTR-9 filing deadline
- Not keeping invoices for 6 years as required by law