5% no ITC standalone, 18% AC + liquor license. Composition scheme 5% for < ₹1.5cr. Cloud kitchens via Zomato/Swiggy. Banquets 18%. Outdoor catering 5%.
RESTAURANT GST RATES: (1) STANDALONE RESTAURANT (non-AC, no liquor): 5% NO ITC. (2) AC RESTAURANT or LIQUOR LICENSE: 18% with ITC. (3) RESTAURANTS in HOTELS (tariff ≤ ₹7,500/night): 5% no ITC. (4) RESTAURANTS in HOTELS (tariff > ₹7,500/night): 18% with ITC. (5) HOME DELIVERY: same as parent restaurant rate. (6) CATERING: 5% no ITC for outdoor catering (some conditions). KEY: AC + liquor = 18%. Standalone = 5%.
COMPOSITION SCHEME FOR RESTAURANTS: (1) TURNOVER ≤ ₹1.5 CRORE: eligible for composition scheme. (2) RATE: 5% of turnover (no separate GST split). (3) NO ITC. (4) Quarterly return CMP-08 + annual GSTR-4. (5) NO INTER-STATE supplies allowed. ADVANTAGES: (1) Simpler compliance. (2) Lower effective rate (5% vs 18% standard rates). (3) Less paperwork. DISADVANTAGES: (1) No ITC. (2) Inter-state restrictions. SMALL RESTAURANTS BENEFIT — large multi-state chains don't qualify.
CLOUD KITCHENS: (1) Operate from commissary — no dine-in. (2) Same GST treatment as restaurants. (3) STANDALONE: 5% no ITC. (4) AC + branded: 5% (no liquor typically). (5) ZOMATO/SWIGGY collect TCS Section 52: 1% on aggregator commission. (6) RESTAURANT pays GST on food sale value. (7) AGGREGATOR PLATFORM (Zomato/Swiggy): 18% GST on commission/delivery fee from restaurant. (8) CONSUMER pays GST INCLUDED in final bill. CRITICAL: maintain records of aggregator commissions for ITC/expense claims.
BANQUET HALL + EVENT GST: (1) BANQUET HALL HIRE: 18% with ITC. (2) INDOOR CATERING in banquets: 18%. (3) OUTDOOR CATERING: 5% no ITC. (4) COMPLEX EVENTS (decoration + venue + catering bundled): GST on package value at 18%. (5) WEDDING CATERING: bundled package usually 18%. STRATEGIC: Many small caterers use composition scheme (5% turnover ≤ ₹1.5cr) avoiding 18%. Large catering companies + premium hotels: 18% standard with ITC.
RESTAURANT CHAIN STRATEGY: (1) MULTI-STATE: 18% with ITC works better — claim ITC on inputs (rent, utilities, ingredients). (2) SINGLE-STATE SMALL: 5% no ITC simpler. (3) LIQUOR LICENSE: jumps to 18% — separate consideration. (4) AC AMBIENCE upgrade: 5% → 18% jump — pricing decision. (5) DELIVERY-FOCUSED: cloud kitchen with 5% rate. (6) FRANCHISE: separate GST registrations per state. (7) AGGREGATOR DEPENDENCY: factor in Zomato/Swiggy commission + 18% GST on commission. (8) GSTR-3B monthly + GSTR-1 monthly. (9) Cash management critical — restaurants are cash-heavy.