Licenses & Compliance for Food Businesses

Basic registration is for businesses with annual turnover up to ₹1.5 crore. State license is required for turnover between ₹1.5 crore and ₹50 crore. Central license is needed for turnover above ₹50 crore or restaurant chains operating in multiple states. (Turnover slabs were revised w.e.f. 1 April 2026 and licences now carry perpetual validity.) TaxClue helps you determine the right category and handles the entire application.

5% GST without ITC (Input Tax Credit) is simpler and works well for small restaurants with low input costs. 18% GST with ITC is better if you have high input costs — rent, equipment, interiors, imported ingredients. We analyse your cost structure and recommend the optimal rate for your specific situation.

The same FSSAI license covers both dine-in and delivery operations. However, aggregator platforms like Zomato and Swiggy require your FSSAI number to be displayed on listings. Make sure your FSSAI license is valid and the category matches your actual operations.

Aggregators like Swiggy and Zomato collect 1% TCS (Tax Collected at Source) under GST. This is essentially pre-paid tax — you get credit for this amount. Ensure your GST returns reconcile the TCS with your GSTR-2B. TaxClue handles this reconciliation as part of our GST filing service.

No. You need FSSAI + GST + Shop Act registration as a minimum. If operating from a commercial kitchen, also check local municipal corporation rules for commercial cooking permissions. Some areas have specific zoning regulations for cloud kitchens. TaxClue provides a complete compliance audit to ensure nothing is missed.