Indian economy is growing and GST is introduced to handle taxes on businesses. Food & Beverage business owners have always struggled to calculate and pay taxes from buying the raw materials, creating the product and eventually selling it to the customer. To ease the process, government has introduced one single tax-GST instead of State Value-Added Tax (VAT), Central Excise, and Service Tax, Entry Tax and a few other indirect taxes.
Before moving to the process of acquiring GST registration let’s see who needs it first.
What kind of restaurants need a GST registration?
Any and all restaurants with turnover of INR 20 lakhs and above need a GST registration by law. Moreover, restaurants in special category state will require GST registration for their restaurant if turnover crosses INR 10 lakhs and more. Restaurants below this turnover can apply for GST registration but its not mandatory for them.
Restaurants who does not have a GST registration cannot charge GST to the customers on their bill.
Now that we know who needs GST registration let’s see what documents you will be needing.
Documents required for GST registration
- Photograph of the restaurant owner/managing partners/proprietor
- Partnership deed (in case of partnership firm)
- Electricity bill of the restaurant
- Tax receipt of the restaurant
- Copy of NOC
- Rent agreement (in case of rent)
- Bank statement/passbook
Now that you have your documents in hand let’s see the process.
Process of getting GST registration for your Restaurant
1. Go to the GST portal
The government has built an entire portal for GST compliances. You need to go to the portal and sign up by email, mobile number and OTP.
2. Fill out the form
Restaurant owners need to fill and submit form GST REG – 01 to get GST registration for restaurants.
Once you fill the form, upload your documents along with your digital signature.
3. Verification of your application
After submission of your application and documents, the department officer will review it. If your form and documents are genuine and in right place your application will be approved. If not, they will reject the application.
4. Grant of GST registration for restaurant
If your application is approved the department will grant you your GST registration certificate for your restaurant.
Once your GST registration comes through you can charge GST to your customers on their food bill. Every invoice or receipt where you charge GST to the customer has to be presented to the government while filing GST returns.
GST registration is state specific registration. If you run chains in different states then you need to have a separate registration for each state.
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