Understanding GST for Restaurants your way to successful complaint Business

As a restaurateur we often think what is GST, whether it is applicable to us and how do we go about it. So, to answer all of these questions we all need to know whether we come under the GST law.

Let us first Know what is the meaning of Restaurant in the eyes of the law.

As per the law Restaurant includes mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied. Further ‘Restaurants’ also includes all the restaurants other than those restaurants which are located in the premises of the hotels, inns, guest house, clubs, campsites or other commercial places meant for a residential or lodging purpose which is having declared tariff. So, even Dhaba’s are not out from the Compliances.

Once your status is clear as a Restaurant, See your Turnover limit.

Do we need to Apply for the GST?

Applicability of GST Depends upon the Annual Turnover.

Annual Turnover	Applicability
40 Lakhs or less	GST not Applicable (Except for North East states where the limit is 10 lakhs or less)
More than 40 lakh and up to 1.5 crore	Composition Scheme of GST (ITC not available)
More than 1.5 Crore	Normal Scheme (ITC available)

 

Once you know that GST is applicable to your restaurant then you need to apply for the GST No.

How to apply for GST Registration?

Documents to be kept intact before you apply for GST Registration.

1. Proof of stakeholders (Partners/Owner/Promoter)
2. Proof of certificate of Incorporation
3. Letter of Authorisation
4. Proof of principle place of business
5. Detail of Bank account

Access the GST Portal ->https://www.gst.gov.in/

Click on Services -> Registration > New Registration option and fill basic contact information which we lead to the generation of Temporary registration Number (TRN). The TRN is the first step of GST registration process. Now fill the information on all the documents which is listed above.

Later using TRN you can keep a record of your GST Registration Application.

What is the GST rate that I need to pay?

Restaurant Type	GST Rate	Return Filing	GST Form-Normal Scheme
AC or Non-AC Restaurant Providing food services	Normal Scheme                 5%	Monthly- 10 days from the end of the month for which such a return is to be filed	a.  GSTR 1 b.  GSTR 2A (a read-only document to match the details uploaded by the supplier in GSTR-1) c.   GSTR 3B (summary of GST liabilities d.  GSTR 9-Annual Return
Restaurants in hotel premises having room declared tariff of:   a.      less than INR 7500 per unit per day   b.      INR 7500 and above per unit per day	5%     18%	Monthly- 10 days from the end of the month for which such a return is to be filed	GSTR: 1,2A,3B
All outdoor catering services	18%	Monthly- 10 days from the end of the month for which such a return is to be filed	GSTR: 1,2A,3B

 

*In case of Composition Scheme –

Form- GSTR 4 for Quarterly Return – 18th of every month following the quarter for which such a return needs to be filed and GSTR 9A for Annual return.

The last question from you must be how do I keep a track of all these?

With monthly Govt. Compliances and the timely reporting, we need to have a proper system to follow so that we focus on our core business and don’t just juggle up with the Compliances. All this is possible if we have a track of records in a simple and timely manner.

There are two central focus point while we run a restaurant, the first one is – Focus on customer Satisfaction and the second one is focus on Govt Compliances, both play a vital role in any business and we tend to apportion different time for both. What if we jell them together and make it a one-process by keeping a record intact and easy to use for future benefits.

For all this we might see many tools in the market with hundreds of features but not touching upon the core focus points.

A good tool will have features like- a Proper Billing system, Easy Data retrieval System and help in Compliances and Accounting in a better way.

We at “Frozen Cheese” provide Restaurant POS Billing software that is fast and very easy to use. One of our key unique features is that you can send digital receipts to your customers through WhatsApp, and maintain a database of your customers, which can be leveraged for promotions. It eases the Processes to solve business problems, especially with regard to: Invoicing Accounting & Compliance and Analytics. Gives you the real time update about – When did customer ordered, (the time when the waiter clicked on the table to initiate order taking), Preparation – When the first KOT was printed, Awaiting Payment – When the bill was generated but payment is yet to be collected.