Guide
GST Registration for Food Businesses in India
Complianceer Team · Aug 28, 2026 · 5 min read
GST for food businesses in 2026: registration thresholds, 5% restaurant rate without ITC, cloud kitchens on Swiggy and Zomato, packaged food and documents.
Quick answer: Food businesses must register for GST once aggregate turnover crosses ₹20 lakh for services such as restaurants (₹10 lakh in special category states) or ₹40 lakh for businesses supplying only goods in most states. Inter-state suppliers of goods generally must register regardless of turnover. Most restaurants and cloud kitchens charge 5% GST without input tax credit, and for orders through Swiggy or Zomato the platform pays the GST.
FSSAI covers food safety; GST covers tax. Almost every food business that grows past the home-kitchen stage needs both, and the two records should match. This guide explains when GST applies, which rates restaurants and food sellers charge, and how to register.
When GST registration is mandatory
| Situation | Registration required? |
|---|---|
| Restaurant or cloud kitchen, turnover above ₹20 lakh | Yes |
| Restaurant in special category state, above ₹10 lakh | Yes |
| Supplier of goods only (packaged food, groceries), above ₹40 lakh in most states | Yes |
| Supplier of goods in special category states, above ₹20 lakh | Yes |
| Any inter-state supply of goods | Yes, regardless of turnover |
| Restaurant selling only through Swiggy or Zomato, below threshold | Generally no, as the platform pays GST |
| Supplier of goods through marketplaces, inter-state | Yes |
| Voluntary registration to claim credit or win B2B work | Optional |
Aggregate turnover includes all taxable, exempt and export supplies across India under the same PAN. Many fresh foods, like unpacked vegetables, fruits, milk and grains, are exempt from GST, but they still count towards aggregate turnover.
GST rates for restaurants and food services
| Supply | GST rate | Input tax credit |
|---|---|---|
| Standalone restaurant, dine-in or takeaway | 5% | No |
| Cloud kitchen or delivery-only kitchen | 5% | No |
| Restaurant in a hotel with room value up to ₹7,500 per day | 5% | No |
| Restaurant in specified premises (room value above ₹7,500) | 18% | Yes |
| Outdoor catering at specified premises | 18% | Yes |
| Restaurant under composition scheme | 5% of turnover | No |
Since 1 April 2025, specified premises are based on the actual value of accommodation supplied above ₹7,500 per unit per day in the preceding year, or on a hotel's voluntary declaration.
Swiggy, Zomato and Section 9(5)
Under Section 9(5) of the CGST Act, ecommerce operators pay GST on restaurant services supplied through them. The platform collects 5% from the customer and deposits it, so the restaurant does not pay GST again on those orders. CBIC clarified in Circular 167/2021 that restaurants report these supplies separately in their returns. If you also sell directly, through dine-in, takeaway or your own website, you charge and pay GST on those sales yourself.
Packaged food and goods sellers
Packaged food sold as goods follows product-specific GST rates rather than the 5% restaurant rate. Rates changed in the 2025 rate rationalisation, so check the current rate notification for each HSN code before invoicing. Sellers of goods through marketplaces that collect TCS generally need GST registration for inter-state sales, while small intra-state sellers may qualify for relief under 2023 notifications.
Documents for GST registration
- PAN of the business or proprietor
- Aadhaar of the proprietor, partners or directors
- Photographs of the proprietor, partners or directors
- Proof of principal place of business: rent agreement, electricity bill or ownership deed
- No-objection letter if the premises are owned by someone else
- Bank account proof: cancelled cheque or bank statement
- Constitution document: partnership deed, LLP agreement or certificate of incorporation
- Authorisation letter or board resolution for the authorised signatory
How to register
- Go to the GST portal and start a new registration.
- Fill Part A with PAN, mobile and email, and verify with OTPs.
- Complete Part B with business details, premises, bank account and HSN or SAC codes.
- Upload documents and complete Aadhaar authentication.
- Track the application reference number and reply to any officer query.
- Download the GST certificate and display it at your premises.
Keep FSSAI and GST aligned
- Use the same legal name and premises address on FSSAI and GST
- Add new outlets to GST as additional places of business and get separate FSSAI licences
- Print GSTIN and FSSAI number on invoices and bills where required
- Reconcile platform settlements with GSTR-1 and GSTR-3B
- Update both records when partners or addresses change
Complianceer handles GST registration and GST filing along with FSSAI, so your records stay consistent.
Common mistakes
- Charging 18% instead of 5% at a standalone restaurant
- Claiming input tax credit while charging 5% restaurant GST
- Charging GST again on Swiggy or Zomato orders the platform already taxed
- Registering GST at one address and FSSAI at another
- Missing GSTR-1 and GSTR-3B deadlines after registration
Frequently asked questions
Is GST registration mandatory for restaurants?
Yes, once aggregate turnover crosses ₹20 lakh, or ₹10 lakh in special category states. Restaurants selling only through Swiggy or Zomato below the threshold generally do not need to register, because the platform pays the GST.
What is the GST rate for restaurants in India?
Most standalone restaurants and cloud kitchens charge 5% GST without input tax credit. Restaurants in hotels with room value above ₹7,500 per day charge 18% with input tax credit.
Do cloud kitchens need GST registration?
Cloud kitchens follow the normal threshold of ₹20 lakh. For orders through delivery platforms, the platform pays GST under Section 9(5), but direct sales are taxable in the kitchen's hands.
Who pays GST on Swiggy and Zomato orders?
Under Section 9(5) of the CGST Act, the delivery platform pays GST on restaurant services ordered through it. The restaurant reports these sales in its returns but does not pay GST on them again.
What is the GST threshold for selling packaged food?
Suppliers of goods only have a ₹40 lakh threshold in most states and ₹20 lakh in special category states. Inter-state supply of goods generally requires registration regardless of turnover.
Do I need both FSSAI and GST?
Yes, in most cases. FSSAI is mandatory for every food business, and GST is required once you cross the turnover threshold or make inter-state supplies of goods.