GST Returns for Restaurants - Overview
📌 TL;DR - GST Returns for Restaurants Services at a Glance
Restaurants must file GSTR-1, GSTR-3B monthly (regular scheme) or CMP-08 quarterly plus GSTR-4 annually (composition). GST is 5% without ITC for most restaurants, 18% with ITC for hotels with room tariff above Rs 7,500. Food delivery platforms pay GST under Section 9(5). Professional filing from Rs 1,999/month.
| Parameter | Details |
|---|---|
| Regular Scheme Returns | GSTR-1 (11th), GSTR-3B (20th), GSTR-9 (31 Dec) |
| Composition Returns | CMP-08 (quarterly by 18th), GSTR-4 (annually by 30 June) |
| GST Rate - Standalone | 5% without ITC (Notification 46/2017) |
| GST Rate - Hotel (Rs 7,500+) | 18% with ITC |
| Composition Rate | 5% flat on turnover, no ITC, no interstate |
| Section 9(5) | Food delivery platforms pay GST on behalf of restaurants |
| Starting Price | Rs 1,999/month per GSTIN (Patron Accounting) |
What Are GST Returns for Restaurants?
GST returns for restaurants are periodic statements filed on the GST portal reporting outward supplies, tax collected, input tax credit claimed, and net tax liability, as mandated under Sections 37, 39, and 44 of the CGST Act, 2017.
Regular scheme restaurants file GSTR-1 (outward supply details) and GSTR-3B (summary return with tax payment) monthly, plus GSTR-9 annually. Composition scheme restaurants file CMP-08 quarterly and GSTR-4 annually.
The 2025 GST reform simplified restaurant rates to a flat 5% for most establishments, but return filing obligations remain scheme-dependent. Section 9(5) adds complexity for restaurants selling through food delivery platforms.
Key Terms for GST Returns for Restaurants:
Section 9(5) - Food delivery platforms (Zomato, Swiggy) are deemed suppliers and must pay 5% GST directly on restaurant services delivered through their platform. Report in Table 3.1.1(ii) of GSTR-3B.
Notification 46/2017 - Prescribes 5% GST rate without ITC for standalone restaurant services. Restaurants in hotels with room tariff Rs 7,500+ pay 18% with ITC.
CMP-08 - Quarterly statement-cum-challan for composition restaurants. Declare turnover, pay 5% flat tax by 18th of month after quarter.
GSTR-4 - Annual return for composition taxpayers consolidating all CMP-08 data. Due by 30th June.
Who Must File Restaurant GST Returns?
- Standalone Restaurants: AC/non-AC, dine-in/takeaway - 5% GST without ITC
- Hotel Restaurants (Rs 7,500+ tariff): 18% GST with full ITC on inputs
- Cloud Kitchens: Treated as restaurants under GST. Section 9(5) applies for platform delivery.
- QSR Chains and Multi-Outlet: GSTR-1/3B per GSTIN, state-wise compliance
- Composition Restaurants: Turnover up to Rs 1.5 crore (Rs 75 lakh special category). 5% flat, no ITC, no interstate.
- Outdoor Catering: 18% GST with ITC
- Platform Sellers (Zomato/Swiggy): GST paid by platform under Section 9(5). Must still report in GSTR-3B.
Note: Restaurants serving alcohol are NOT eligible for composition scheme. Alcohol attracts state VAT, not GST - bills must be bifurcated.
Restaurant GST Filing Services
| Service | What We Do |
|---|---|
| GST Rate Advisory | Accurate classification under 5% vs 18%, composition eligibility assessment, and Section 9(5) impact analysis for platform sellers |
| GSTR-1 and GSTR-3B Filing (Regular) | Monthly outward supply reporting, ITC reconciliation (for 18% category), and summary return filing with tax payment on gst.gov.in |
| CMP-08 and GSTR-4 Filing (Composition) | Quarterly self-assessed tax payment, annual return consolidation, and transition advisory if turnover crosses Rs 1.5 crore |
| Section 9(5) Platform Compliance | Verification that Zomato/Swiggy has discharged GST, correct Table 3.1.1(ii) reporting, and reconciliation with platform settlement reports |
| GSTR-9 Annual Return | Year-end consolidation for regular scheme restaurants, reconciliation with books, and ITC verification |
| Multi-Outlet Compliance | Centralised GST filing across multiple outlets, state-wise GSTIN management, and consolidated reporting for chains |
How to File Restaurant GST Returns
Step-by-step process for filing restaurant GST returns under regular and composition schemes, including Section 9(5) platform compliance.
Classify Your Restaurant
Determine if you fall under 5% (no ITC, Notification 46/2017), 18% (with ITC, hotel Rs 7,500+ tariff), or composition scheme (Section 10, turnover up to Rs 1.5 crore). This determines your return forms and ITC eligibility.
Maintain Monthly Records
Keep sales invoices (tax invoices for regular, bills of supply for composition), purchase invoices, expense records, and platform settlement statements (Zomato/Swiggy) organised by month.
File GSTR-1 (Regular Scheme)
Report all outward supplies - B2B invoices with GSTIN, B2C aggregate sales, credit/debit notes, and advances received. File by the 11th of the following month on gst.gov.in.
File GSTR-3B (Regular Scheme)
Declare total output tax, claim ITC (only if 18% bracket), compute net liability, and pay tax. Restaurants at 5% must report zero ITC per Notification 46/2017. File by the 20th.
File CMP-08 (Composition Scheme)
Declare total turnover for the quarter, compute 5% tax on total outward supplies, and pay via challan. File by the 18th of the month after the quarter ends. No ITC claim allowed.
Verify Section 9(5) Platform Compliance
If selling through Zomato/Swiggy, verify the platform has discharged GST on your behalf. Report these supplies in Table 3.1.1(ii) of GSTR-3B - NOT in Table 3.1(a). Do not pay GST again on these supplies.
File Annual Return
File GSTR-9 (regular scheme, turnover above Rs 2 crore) by 31st December or GSTR-4 (composition scheme) by 30th June following the financial year end. Reconcile with books of accounts.
Documents Required for Restaurant GST Filing
- GST registration certificate and GSTIN
- Monthly sales summary: POS reports, billing software exports
- Tax invoices (regular) or bills of supply (composition)
- Purchase invoices: Ingredients, packaging, equipment, rent
- Platform settlement reports: Zomato, Swiggy, etc.
- ITC register (for 18% bracket restaurants only)
- Bank statements showing GST payments
- HSN-wise summary of food items and services
- Prior period GSTR-1, GSTR-3B or CMP-08 returns
- DSC or EVC access for portal filing
Common Restaurant GST Challenges
| Challenge | Impact | How Patron Accounting Solves It |
|---|---|---|
| ITC Confusion at 5% Rate | Restaurant owners mistakenly claim ITC while operating under the 5% rate without ITC eligibility | Configure billing software to block ITC claims. Ensure GSTR-3B reflects zero ITC per Notification 46/2017. |
| Section 9(5) Double Reporting | Same supply reported in both own GSTR-3B Table 3.1(a) and platform filing, causing double taxation | Report platform supplies only in Table 3.1.1(ii) of GSTR-3B. Verify with platform GST discharge report. |
| Composition Turnover Breach | Crossing Rs 1.5 crore mid-year requires immediate transition to regular scheme | Monitor turnover monthly. Plan transition before threshold. Patron tracks thresholds proactively. |
| Alcohol vs Food Bifurcation | Incorrect bill splitting between food (GST) and alcohol (state VAT) causes wrong tax reporting | Maintain separate billing categories and HSN codes in POS system for food and alcohol items. |
Restaurant GST Filing Fees
| Fee Component | Amount |
|---|---|
| Single Outlet - GSTR-1 + GSTR-3B (Regular) | Starting from INR 1,999/month |
| Single Outlet - CMP-08 (Composition) | Rs 999/quarter |
| Multi-Outlet Chain (per GSTIN) | Rs 1,499/month |
| Section 9(5) Platform Reconciliation | Rs 999/month add-on |
| GSTR-9 Annual Return | Rs 3,999 |
| GSTR-4 Annual Return (Composition) | Rs 1,999 |
| Complete Annual Compliance Package | Rs 19,999/year |
All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.
Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.
Get a free GST Returns for Restaurants consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.
Restaurant GST Filing Calendar
| Stage | Estimated Timeline |
|---|---|
| GSTR-1 (Regular Scheme) | 11th of next month |
| GSTR-3B (Regular Scheme) | 20th of next month |
| CMP-08 (Composition Quarterly) | 18th of month after quarter |
| GSTR-9 (Annual - Regular) | 31st December |
| GSTR-4 (Annual - Composition) | 30th June of next year |
| Monthly Data Collection | 1-5 days post month-end |
Critical: Missing GSTR-3B blocks future return filing. Missing 2+ consecutive CMP-08 quarters may trigger registration cancellation. Late fee for GSTR-1/3B: Rs 50/day (max Rs 5,000). Late CMP-08: Rs 200/day (max Rs 5,000). Interest: 18% p.a. on delayed tax.
Benefits of Professional Restaurant GST Filing
Correct Rate Application
Expert classification ensures you charge the right rate (5% or 18%) and do not wrongly claim or miss ITC based on your restaurant type
Section 9(5) Clarity
Clear separation of platform-delivered supplies from direct sales prevents double taxation and incorrect GSTR-3B reporting
Composition Monitoring
Proactive turnover tracking prevents unexpected scheme breach and ensures smooth transition to regular scheme if needed
Penalty Avoidance
Timely filing prevents Rs 200/day late fee (CMP-08) and Rs 50/day (GSTR-1/3B), plus 18% interest on delayed tax payments
Audit Readiness
Clean, reconciled returns supported by proper invoices and POS records withstand departmental scrutiny confidently
Why Restaurants Trust Patron Accounting
300+ restaurant clients from standalone eateries to multi-city QSR chains and cloud kitchens. 99%+ on-time filing rate across all managed GSTINs. Zero Section 9(5) misreporting - 100% accuracy on platform-delivered supply reporting. 4.8/5 Google rating. Offices in Pune, Mumbai, Delhi, and Gurugram.
Regular Scheme vs Composition Scheme for Restaurants
| Parameter | Regular (5%) | Regular (18%) | Composition (5%) |
|---|---|---|---|
| GST Rate | 5% on food value | 18% on food value | 5% flat on turnover |
| ITC | Not available | Available | Not available |
| Returns | GSTR-1, GSTR-3B monthly | GSTR-1, GSTR-3B monthly | CMP-08 quarterly, GSTR-4 annual |
| Invoice Type | Tax Invoice | Tax Invoice | Bill of Supply |
| Interstate Supply | Allowed | Allowed | Not allowed |
| Turnover Limit | No upper limit | No upper limit | Up to Rs 1.5 crore |
| Alcohol Service | Allowed (separate VAT) | Allowed (separate VAT) | Not allowed |
| E-commerce Sales | Allowed | Allowed | Limited (Sec 9(5) OK) |
Related Restaurant and Food Business Services
- GST Registration - New registration for restaurants
- GST Returns - Regular GSTR-1/3B filing for all businesses
- FSSAI Registration - Food licence for restaurants
- FSSAI Returns - Annual FSSAI return filing
- GST Notice - Response to department notices
- Hospitality Accounting - Full accounting for hospitality sector
Legal Framework and Penalties
| Provision | Details |
|---|---|
| Section 9(5) CGST Act | E-commerce operator as deemed supplier for restaurant services. Zomato/Swiggy pay 5% GST directly. |
| Section 10 CGST Act | Composition scheme eligibility. Turnover up to Rs 1.5 crore. No ITC, no interstate, no alcohol. |
| Notification 46/2017 | 5% rate without ITC for standalone restaurants. |
| Late GSTR-1/GSTR-3B | Rs 50/day (CGST Rs 25 + SGST Rs 25), max Rs 5,000. Nil: Rs 20/day. |
| Late CMP-08 | Rs 200/day (Rs 100 CGST + Rs 100 SGST), max Rs 5,000. |
| Interest | 18% per annum on delayed tax payments under Section 50. |
Risk: Non-filing for 2+ consecutive quarters under composition may lead to registration cancellation. Missing GSTR-3B blocks future return filing.
Portal: GST Portal | GST Council
Quick Answers
GST rate for standalone restaurant? 5% without ITC.
Hotel restaurant (Rs 7,500+ room)? 18% with ITC.
Composition scheme rate? 5% flat on turnover, no ITC, no interstate supply.
GSTR-1 due date? 11th of the following month.
CMP-08 due date? 18th of the month following the quarter.
Get Your Restaurant GST Returns Filed On Time
Missing GSTR-3B blocks all future return filing. Missing CMP-08 for 2+ consecutive quarters triggers registration cancellation. Late fee accumulates at Rs 50-200/day. Section 9(5) misreporting triggers demand notices. Every day of delay increases your financial exposure.
Simplify your restaurant GST compliance. Call +91 945 945 6700 or WhatsApp us for a free consultation.
Simplify Your Restaurant GST Compliance
GST compliance for restaurants requires clarity on the correct rate (5% or 18%), the right scheme (regular vs composition), and proper handling of Section 9(5) platform supplies. Whether you operate a single outlet or a multi-city chain, professional assistance ensures accurate rate application, correct ITC treatment, and timely filing.
Patron Accounting serves 300+ restaurant clients with 99%+ on-time filing. From Rs 1,999/month per GSTIN. Offices in Pune, Mumbai, Delhi, and Gurugram.
Book a Free Consultation - No Obligation.
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Content Created: March 2026 | Last Updated: | Next Review: June 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP
This page is reviewed quarterly - aligned to GST Council meetings, restaurant rate notifications, Section 9(5) updates, and portal changes. Next review: June 2026.