Goods and Service Tax Filing & Registration Service for Restaurants

GST Registration is more important than ever for restaurants. The reason is that restaurants are always busy. Thanks to more help from companies like Zomato and Swiggy that are just starting up. This brings in business, so the government makes people pay different taxes.

In this article, we’ll talk about how restaurants can sign up for GST. We will also learn about some registrations for restaurants that are required and some that are not, and how they can help your business a lot.

Know about GST Registration

GST is a type of tax that is put on goods and services. According to the GST law of 2017, anyone whose business has a turnover of Rs. 40 Lakhs or more has to register for GST. But it might work in some other situations as well.

The Goods and Services Tax (GST) is an example of an indirect tax. GST is made up of the CGST and the SGST, which stand for the central GST and the state GST, respectively.

The main goal of this tax structure is to control the way other indirect taxes affect each other. For example, the GST on the sale of electricity gets rid of indirect taxes like service tax, excise duty, VAT, and so on.

Types of GST

There are four different kinds of GST in India.

SGST (State Goods and Services Tax).
CGST (Central Goods and Services Tax).
IGST (Integrated Goods and Services Tax).
UTGST (Union Territory Goods and Service Tax)

Let’s talk about each of these, as they are all important for a restaurant business to know.

What does SGST (State Goods and Services Tax)mean?

The SGST tax is paid when goods or services are sold within a state. Taxes like VAT and the luxury tax would be part of the SGST tax. It also includes entertainment tax, service tax, central sales tax, and entry tax. So, this means that SGST only applies to restaurants that only do business in their own state or city, and the State government taxes it.

What does CGST (Central Goods and Services Tax)mean?

The second type of tax that is part of the Goods and Service Tax system is the Central Goods and Services Tax. The tax is very similar to VAT in that it is charged when goods are sold or bought.

They are fees that the central government charges for moving goods and services within the same state. So, if you are registered for GST and your restaurant only serves people in the same state, you will have to pay both SGST and CGST.

But when CGST and SGST are added together, the tax rate does not go over 14%.

What does IGST (Integrated Goods and Services Tax) mean?

Only sales between states are charged IGST. This is done through the e-way bill, which links it to GST at both the states and the Centre. It is collected by the Central Government, which then gives it to the state governments.

IGST helps taxpayers by lowering the costs of doing business between states for every Indian. Goods and services are taxed based on where they are going.

We now know what GST is. Let’s look at the list of documents that you must have in order to register for GST.

Documents required in GST Registration for Restaurants

To sign up for GST for a restaurant business, you will need the following documents:

First of all, scanned copies of photos of the restaurant’s owner
Second, a picture of the managing partner or designated partner in a partnership firm
Also, if you own the property, you will need to show proof of ownership, such as an electricity bill, a tax receipt/property receipt, or documents from the registry.
If the property is rented, you need to bring a copy of the rent/lease agreement and the electricity bill with the owner’s name and signature on it.
If you rent the property, you will also have to send in a copy of the NOC (No Objection Certificate) from the owner.
Other documents that may be needed include a bare-scanned bank statement, a scanned copy of a bank passbook, or a cancelled check with the name and number of the bank account, MICR, IFSC, branch information, etc.
Let’s look at some of the most frequently asked questions about GST registration for restaurants.

What are GST Tax Rates for Restaurants?

Each type of restaurant has a different GST Tax rate. But there are really only three main groups.

First, if a restaurant doesn’t have air conditioning and doesn’t have a licence to serve alcohol, they can’t get a 5% GST tax credit for the food and drinks they sell (ITC)
Second, restaurants with air conditioning have to pay 5% GST tax on food and drinks they sell all year long, but they can get back all of that tax (ITC)
Lastly, the GST Tax rate for food and drinks served in an air-conditioned restaurant in a hotel with 5 stars or more is 18%. In the same way, restaurants here also get an ITC.

Are there any GST Returns filing in the restaurant or food business?

Yes, restaurants also have to file a GST Return. Most restaurant GST returns fall into three main categories.

Return 1: Sales Returns are due every month on the 10th.
Return No. 2: The Purchase Return is due every month on the 15th.
Return 3: The combined sales and purchase returns are due every month on the 20th.
Important: Restaurants also have to file a GST return every year by December 31.

How to claim Input Tax Credit as a Restaurant?

Restaurants in hotels that charge Rs 7500 or more per night are allowed to follow certain rules without limits. Also, the owner of a restaurant would get a tax credit for how much he or she spent on raw materials. It is only due when the final indirect tax bill on goods bought from consumers is figured out.

Is there any other registration mandatory for starting a Restaurant Business?

FSSAI Registration is the most important registration to get before starting a business in the food industry. India’s Food Safety and Standards Authority is an independent group.

The main goal of FSSAI is to keep an eye on the food business and do what needs to be done to stop food from being tampered with. Restaurants have to have FSSAI Registration because of this.

How to get GST Registration for Restaurants?

You need to fill out an application form on GST Portal to register for GST. It has many complicated steps. So, the best thing to do is to have a professional do it for you while you relax and focus on other things.

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See GST Filing Packages on https://www.gstsuvidhakendras.org/gstmonthlyfiling/

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Tag : GST Filing, GST Registration, TDS Filing