Restaurant GST Billing Guide: Slabs, Invoicing Rules & FSSAI Requirements

Navigating the Goods and Services Tax (GST) landscape for food and beverage businesses in India can be daunting. Between air-conditioned vs non-AC historical distinctions, room tariff thresholds in hotel properties, and strict mandatory FSSAI invoice disclosures, even experienced restaurateurs can make costly tax filing errors.

In this definitive guide, we clarify the current GST framework for Indian restaurants, explain mandatory invoice receipt elements, and show how automated restaurant billing software protects you from tax scrutiny.

1. The Two Primary Restaurant GST Slabs

The 5% GST Slab (Without Input Tax Credit - ITC)

The vast majority of standalone dining establishments in India operate under the 5% GST rate:

• Applies to: Standalone restaurants, cafes, cloud kitchens, takeaways, and food delivery outlets (whether AC or Non-AC).
• Breakdown: 2.5% CGST + 2.5% SGST (or 5% IGST on inter-state deliveries).
• Key Condition: No Input Tax Credit (ITC) can be claimed on commercial rent, kitchen equipment, or raw material purchases under this slab.

The 18% GST Slab (With Input Tax Credit - ITC)

• Applies to: Restaurants located inside hotel premises where the declared room tariff is ₹7,500 or more per unit per night.
• Breakdown: 9% CGST + 9% SGST.
• Key Advantage: Full Input Tax Credit can be claimed against business expenses, raw materials, and hotel overheads.

2. Mandatory Information on an Indian Restaurant Tax Invoice

The GST department and Food Safety and Standards Authority of India (FSSAI) require specific fields on every printed receipt:

1. Legal Trade Name & Branch Address: Exact name registered under GST and local municipal trade license.
2. 15-Digit GSTIN: The restaurant's official Goods and Services Tax Identification Number.
3. 14-Digit FSSAI License Number: Mandatory display on all invoices and packaging labels.
4. Unique Consecutive Invoice Number: Must be strictly sequential for the financial year without gaps.
5. Date and Time of Invoice: Exact transaction timestamp.
6. Itemized Subtotal & Tax Breakup: Clear separation between food items, CGST (2.5%), and SGST (2.5%).

3. How RestoBlink Automates Indian Tax Invoicing

Manual tax calculations by cashiers lead to rounding errors, incorrect tax rate assignments, and discrepancies during monthly GSTR-1 filings. With RestoBlink Restaurant Software India:

• One-Time Tax Configuration: Enter your GSTIN and FSSAI number once. The system applies the correct 2.5% + 2.5% tax formula across all dine-in and parcel orders automatically.
• Automatic Tax Exemptions: Exclude packaged water bottles, canned sodas sold at MRP, or pre-packaged snack goods from restaurant service tax slabs seamlessly.
• Instant GSTR-1 Export: Export clean monthly sales summaries with total taxable value, CGST collected, and SGST collected ready for your Chartered Accountant in one click.