GST on Restaurants in India (2026) — What Owners Actually Need to Know
A no-nonsense 2026 GST guide for Indian restaurant owners. 5% vs 18%, input credit, billing format, invoice mandates, GST on QR menu software, and common audit pitfalls.
📅 3 June 2026⏱ 7 min read✍️ Dhruvdev Patel · Founder, ZaikaQR
Frequently asked questions
What's the GST rate for my café?
If you're a standalone café or restaurant (not inside a hotel with ₹7,500+ room tariff) you charge 5% GST without input credit. Cloud kitchens delivering only via aggregators follow special rules — ask your CA.
Do I need to issue a GST invoice for every customer?
Yes — even small orders. ZaikaQR generates a GST-compliant invoice automatically for every paid order, with your GSTIN, the GST line, and a unique invoice number.
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GST is simpler than your CA makes it sound. Here are the 6 rules that actually matter for a normal Indian café or restaurant in 2026.
1. The rate: 5% (most cases) or 18% (specific cases)
Standalone restaurants and cafés in India pay 5% GST without input tax credit (ITC). This is the default for almost every café, bakery, casual dine-in, and QSR.
18% GST with ITC applies if your restaurant is inside a hotel where the room tariff is above ₹7,500 per night. If you run a regular café — this isn't you.
2. You must issue a GST invoice
Every paid order needs a GST-compliant invoice with:
Your business name and GSTIN
Customer name (or "B2C cash" for walk-ins)
Invoice number (unique, sequential)
Date of order
Itemized list with HSN/SAC code, quantity, rate, taxable value
GST line (CGST + SGST adding to 5%, or IGST 5%)
Total payable
ZaikaQR generates this automatically for every order. The customer sees a polished bill at checkout; your records show the full GST breakdown for monthly filing.
3. Filing — GSTR-1 monthly, GSTR-3B monthly
Most restaurants file GSTR-1 (outward supplies) by the 11th of each month and GSTR-3B (summary) by the 20th. If you have a CA — they handle it. If you don't, GSTN's own portal is functional but unintuitive.
4. The mandatory QR code on B2B invoices
If your turnover is above ₹5 crore, B2B invoices must carry a Dynamic QR code as per Rule 46(r). For most cafés this doesn't apply — only if you have corporate clients invoiced separately.
5. GST on the software you buy (yes, including ZaikaQR)
Software subscriptions like ZaikaQR are taxed at 18% GST. We add it to your subscription invoice. If your restaurant is registered for GST, you can claim input credit on it — saves you the 18% effectively.
6. Common audit pitfalls
Cash sales not on invoice. If a customer pays cash and you don't generate the invoice, that's a violation.
Discount handling. GST is on the discounted price, not the list price.
Service charge confusion. Service charge is voluntary; tipping doesn't attract GST. Don't include it in the GST line.
Composite vs Regular. If your turnover stays under ₹1.5 crore you may opt for the Composite Scheme — even simpler returns. Ask your CA.
Next step
For an in-depth ZaikaQR-specific guide, see the glossary entry on GST for restaurants. For setup, configure your GSTIN and rate once in Admin → Shop Settings — every order from then on shows the correct GST line on the bill and KOT.