Basic registration up to ₹1.5 crore turnover, State licence from ₹1.5–50 crore, Central licence above ₹50 crore or for multi-state operations (slabs revised 1 April 2026). Mandatory for every food business.

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GST Registration

Needed once turnover crosses ₹20 lakh (₹10 lakh in special-category states). Restaurant service is 5% without ITC; 18% with ITC applies only inside hotels with room tariffs above ₹7,500 a night.

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Shop & Establishment Act License

Register under the state Shops & Establishments Act. Most states require it; the deadline and renewal rules vary by state.

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Fire NOC from Local Fire Department

Required where state fire rules apply to your seating, area or building. Inspections cover fire extinguishers, exits, LPG safety, and kitchen ventilation.

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Signage/Trade License

Trade and signage licences from the municipal corporation, where your city requires them — the names and rules vary by city.

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Health Trade License

Health trade licence for food handling from the local municipal body, where applicable — some cities also require an eating house licence. Varies by state and city.

Your Compliance Map

What Applies to a Restaurant

Food safety and tax are national; almost everything else — shop registration, trade and health licences, fire, liquor — is set by your state or city. Items marked “If applicable” depend on where you operate and how big you are.

Obligation	Applies when	Due	Law	Status
FSSAI registration / licence	Every food business — registration up to ₹1.5 crore turnover, State licence ₹1.5–50 crore, Central licence above ₹50 crore or multi-state	Before you start; licences issued from 1 Apr 2026 are perpetual with an annual fee	FSS Act, 2006, s.31	Mandatory
FSSAI display & hygiene	Every outlet — certificate displayed at the premises, FSSAI number on delivery-app listings, hygiene and sanitation standards met	Ongoing; inspections at any time	FSS (Licensing & Registration) Regulations, 2011	Mandatory
GST registration	Turnover above ₹20 lakh (₹10 lakh in special-category states)	Within 30 days of crossing the limit	CGST Act, s.22	If applicable
GST returnsGSTR-1 / GSTR-3B or CMP-08 / GSTR-4	Every registered restaurant; composition up to ₹1.5 crore turnover	Regular: 11th and 20th monthly. Composition: CMP-08 by the 18th after each quarter, GSTR-4 by 30 April	CGST Act, s.37 / s.39 / s.10	If applicable
GST annual returnGSTR-9	Regular taxpayers above ₹2 crore turnover (optional below)	31 December after the year	CGST Act, s.44	If applicable
Shops & establishments registration	Required in most states; thresholds, deadlines and renewals vary by state	Usually soon after opening — per state law	State Shops & Establishments Act	If applicable
Municipal trade / health licence	Where your city’s municipal law requires it for eating places — varies by city	Before opening; renew as the city sets	State municipal laws	If applicable
Eating house licence	Some cities require it from the police or municipal licensing authority	Before opening	State / city police & municipal law	If applicable
Fire NOC	Seating capacity, floor area or building height above the limits in your state’s fire rules	Before opening; renew as the fire authority sets	State Fire Services Act	If applicable
Liquor / bar licence	Serving alcohol — alcohol is outside GST and taxed by the state	Before serving; renew on the state excise cycle	State Excise Act	If applicable
Signage licence	Outdoor boards or hoardings, where the city requires permission	Before installing	Municipal advertisement bye-laws	If applicable
Music licence	Playing recorded music or hosting live performances in public	Before playing	Copyright Act, 1957	If applicable
PF & ESI	EPF at 20+ employees; ESI at 10+ employees within the wage ceiling	Contributions by the 15th of each month	Code on Social Security, 2020	If applicable
Professional tax & labour welfare fund	States that levy them — varies by state	As the state sets	State laws	If applicable
TDS on rent & contractors	Paying rent, contractors or professionals above the thresholds (audited businesses and companies)	Deposit by the 7th; quarterly statements 31 Jul, 31 Oct, 31 Jan, 31 May	Income-tax Act, 2025, s.393	If applicable
Income tax return	Every restaurant owner or entity	FY 2025-26: 31 August 2026 for ITR-3 / ITR-4; 31 October 2026 if audited	Income-tax Act, 1961, s.139	Mandatory
Advance tax	Tax for the year is ₹10,000 or more; presumptive (44AD) pay it all by 15 March	15 June, 15 September, 15 December, 15 March	Income-tax Act, 2025	If applicable
Trademark for the restaurant name	Before a second outlet, a franchise or a packaged product line	As early as possible	Trade Marks Act, 1999	Recommended

State and city licences differ in name, threshold and renewal cycle — we confirm the exact list for your address before you sign a lease. FSSAI licences issued from 1 April 2026 no longer expire, but the annual fee and annual return must be kept up or the licence is deemed suspended; licences issued earlier keep their expiry date. The annual return (Form D1, by 31 May) applies to licensees whose category requires it, such as a central kitchen making packaged products. Returns for FY 2025-26 are still filed under the Income-tax Act, 1961.

FY 2026-27 Calendar

Your Year at a Glance

The dates a GST-registered restaurant with staff works to. Monthly: TDS deposit by the 7th, GSTR-1 by the 11th, PF and ESI by the 15th and GSTR-3B by the 20th. Composition restaurants file CMP-08 by the 18th after each quarter instead.

Apr – JunQ1
- 18 AprCMP-08 for January–March, if you are on composition
- 30 AprGSTR-4 annual return for FY 2025-26 (composition)
- 31 MayFSSAI annual return where your licence category needs one; Q4 TDS statements
- 15 JunAdvance tax — 15% of the year’s tax
Jul – SepQ2
- 18 JulCMP-08 for April–June (composition)
- 31 AugITR-3 / ITR-4 for FY 2025-26 (non-audit)
- 15 SepAdvance tax — 45% cumulative
- 30 SepTax audit report, if turnover crosses the limit
Oct – DecQ3
- 18 OctCMP-08 for July–September (composition)
- 31 OctITR for audited restaurants; Q2 TDS statements
- 15 DecAdvance tax — 75% cumulative
- 31 DecGSTR-9 for FY 2025-26, where it applies
Jan – MarQ4
- 18 JanCMP-08 for October–December (composition)
- 15 MarAdvance tax — 100% (presumptive 44AD pay the full amount now)
- 31 MarComposition option (CMP-02) for FY 2027-28, if you switch
- 31 MarCheck trade, health, fire and excise licence renewal dates — set by your city and state

What Goes Wrong

Mistakes That Cost Restaurants Money

Restaurants get hit from two sides — food and civic inspectors on the premises, and GST on the paperwork.

Opening before FSSAI

Running a food business without registration or a licence is an offence, and delivery apps will not list you without an FSSAI number.

Up to 6 months’ jail and ₹5 lakh fine

Ignoring an FSSAI improvement notice

If hygiene lapses flagged in an inspection are not fixed in time, the licence can be suspended and then cancelled.

Suspension — outlet shut until cleared

Charging 18% and claiming ITC

A standalone restaurant has no 18% option. Credit claimed on rent, equipment or interiors has to be reversed.

ITC reversed + 18% p.a. interest + penalty

Paying GST twice on app orders

Swiggy and Zomato already pay the 5% on orders through them. Adding those sales to your taxable turnover pays the same tax again.

5% of app sales paid twice

Crossing ₹20 lakh unregistered

Dine-in and takeaway sales above the limit without a GSTIN leave you owing the tax you never collected.

Tax + interest; penalty ₹10,000 or the tax, whichever is higher

Letting a fire NOC lapse

Where a fire NOC is required, operating without a valid one is a ground for sealing the premises.

Sealing or closure by the authority

Working With TaxClue

How It Works — and What We Need

Four steps

Tell us about the outletCity, format (dine-in, cloud kitchen, café, bar), seating, expected turnover and staff.
Get your licence mapEvery central, state and city licence your address needs, in the order to apply — fixed fee quoted upfront.
We file, you signFSSAI, GST, shop registration and local licence applications prepared and followed up.
Run it month to monthGST returns with app orders split out, payroll filings and reminders before each renewal.

Documents to keep ready

PAN & Aadhaar of the owner / partners / directors
Rent agreement or ownership proofWith the owner’s NOC
Kitchen layout plan and menuFor FSSAI and fire applications
List of food categories and equipment
Water test reportWhere your FSSAI category asks for it
Staff list and salary details
Swiggy / Zomato payout statements and POS sales reports

Read the Detail

Restaurant Guides

Common Questions

Restaurant Compliance — FAQs

Since 1 April 2026 basic registration covers food businesses with annual turnover up to ₹1.5 crore. From ₹1.5 crore to ₹50 crore you need a State licence, and above ₹50 crore, or for chains operating in several states, a Central licence for the head office. Licences issued from 1 April 2026 do not expire — instead you pay the annual fee and file the annual return on time, or the licence is deemed suspended — but changes such as a new address or a bigger kitchen still need a modification. TaxClue helps you determine the right category and handles the entire application.

No — there is no choice for a standalone restaurant. Restaurant service, dine-in or takeaway, AC or non-AC, is taxed at 5% without input tax credit. The 18% rate with ITC applies only to restaurants inside hotels where room tariffs are above ₹7,500 a night (“specified premises”). These rates continued unchanged under GST 2.0 from 22 September 2025. What you can choose, up to ₹1.5 crore turnover, is the composition scheme instead of regular returns.

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.

The app does. Since 1 January 2022, food delivery platforms pay the 5% GST on restaurant food ordered through them, under Section 9(5) of the CGST Act. You do not charge GST again on those orders and no GST TCS is collected on them — but you still report them in your GSTR-1 as supplies made through the operator. Keep app orders separate from dine-in and takeaway sales, or you will pay GST twice. TaxClue handles this split as part of our GST filing service.

No. You need FSSAI and, in most states, Shops & Establishments registration as a minimum — plus GST once turnover crosses ₹20 lakh. 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.

No. Not for a licence issued on or after 1 April 2026 — those are perpetual, provided the annual fee and return are kept up (miss them and the licence is deemed suspended). A licence issued before that date still carries its expiry date and must be renewed or replaced before it lapses. What remains is keeping the licence accurate: a change of address, ownership, kitchen capacity or food category needs a modification, and moving into a bigger turnover band needs an upgrade from registration to a State licence. Some licence categories also file an annual return by 31 May.

It is available up to ₹1.5 crore turnover. You pay 5% of turnover (2.5% CGST + 2.5% SGST) and file quarterly, but you issue a bill of supply, cannot collect GST from customers and cannot claim ITC. Since a regular restaurant also pays 5% without ITC, composition mainly saves paperwork — it costs you margin, because the tax comes out of your own pocket instead of the bill. We compare both on your numbers before you choose.

Yes. As e-commerce operators they deduct TDS under Section 194-O at 0.1% of your gross sales through the app (5% if your PAN is not linked). It appears in your Form 26AS / AIS, and you claim it against your tax in the ITR — any excess comes back as a refund. Resident individual owners with app sales up to ₹5 lakh a year and a valid PAN are outside this deduction.

It depends on your state and city. Commonly: Shops & Establishments registration, a municipal trade or health licence, a fire NOC above the seating or area limits, a signage licence for outdoor boards, and in some cities an eating house licence. Serving alcohol adds a state excise licence, and playing music adds a copyright licence. The names, thresholds and renewal cycles differ city to city, so we check your exact address before you commit to the premises.

Alcoholic liquor for human consumption is outside GST. The food on the bill carries GST at the restaurant rate; the liquor carries state VAT or sales tax under your state’s law, and the bar needs a licence from the state excise department with its own renewal cycle. Keep the two parts separate on the bill and in your books, because they are reported to different authorities.

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