GST Billing for Restaurants in India: A Simple Guide

GST billing basics for Indian restaurant owners: the 5% restaurant GST, what a proper bill shows, GST reports, common mistakes and when to check with your CA.

GST is one of those things most restaurant owners know they must get right but rarely have time to understand properly. This guide covers the basics in plain language: what rate most restaurants charge, what your bill should show, which reports to keep and the common mistakes that cause trouble at filing time. It is not legal or tax advice. Your chartered accountant (CA) knows your exact situation, so use this as a starting point for that conversation.

The basic rate: 5% for most restaurants

For most standalone restaurants, cafés, messes and food stalls in India, GST on food and beverages served is 5%. On a bill this usually appears split into two equal parts for sales within your state:

• CGST (central): 2.5%
• SGST (state): 2.5%

So a ₹400 meal becomes ₹400 + ₹10 CGST + ₹10 SGST = ₹420.

There are situations where the rules differ, for example restaurants inside certain hotels, outdoor catering, composition scheme businesses, or items sold that are not restaurant service. Do not guess. Ask your CA which rate and scheme apply to you before you set up your billing software.

What a proper restaurant GST bill should show

A clean bill protects you during audits and builds trust with customers. Ask your CA for the exact list for your registration, but most restaurant bills include:

1. Your restaurant's legal or trade name and address
2. Your GSTIN
3. A unique, serially numbered bill or invoice number
4. Date of the bill
5. Item names, quantity and price
6. Taxable value, CGST and SGST amounts shown separately
7. Total amount payable
8. Any discount applied, shown before tax is calculated

Handwritten bills and calculator totals make these easy to get wrong. A POS generates them the same way every time.

Discounts, service charge and rounding

Discounts

When you give a discount on the bill, GST is generally calculated on the price after the discount. A POS that applies the discount first and tax second keeps your figures consistent. Avoid giving "cash discounts" off the record; it creates a gap between your sales and your bank or UPI receipts.

Service charge

Service charge is a sensitive area in India, and guidance on it has changed over time. Many restaurants have stopped adding it automatically. If you are considering one, discuss it with your CA first.

Rounding

Rounding a bill from ₹419.50 to ₹420 is common. Make sure the round-off is shown as a separate line so your totals still reconcile.

Reports to keep every month

Your CA will thank you if you hand over clean data instead of a bag of bill books. At minimum, keep:

• Daily sales summary: total sales, tax collected, payment mode split (UPI, cash, card)
• GST report: taxable value and CGST/SGST collected for the period
• Item-wise sales: useful for menu decisions as well as tax
• Cancelled or void bills with reasons

Export these monthly and store them somewhere safe, such as a shared drive your CA can access. Keep your purchase bills too, even if you are not claiming input credit, as your CA may need them.

Common GST billing mistakes in restaurants

1. Wrong rate set up in software. One wrong setting repeats on every bill. Get your CA to check the first few bills.
2. Breaks in bill numbering. Gaps or duplicate numbers raise questions. Let the POS number bills automatically.
3. Tax added to prices that already include tax. Decide whether your menu prices are inclusive or exclusive of GST and be consistent everywhere, including printed and QR menus.
4. Mismatch between sales and receipts. If UPI and cash totals don't match your sales report, sort it out daily, not at year end.
5. Deleting bills to fix mistakes. Cancel or void them with a reason instead, so there is a trail.

How a POS helps with GST

A restaurant POS does not file GST for you, but it removes most of the manual errors that make filing painful. Look for one that:

• Prints your GSTIN and tax breakup on every bill
• Numbers bills automatically
• Applies discounts before tax
• Records the payment mode for each bill
• Gives you daily sales and GST reports you can export

KiwiTri POS includes GST billing, discounts, split UPI/cash/card payments and a daily sales report on its Standard plan (₹799 per month + GST). The Pro plan adds item and GST reports, and role-based staff access so only managers can cancel bills or change prices. Bills print on standard 58mm or 80mm Bluetooth thermal printers, and the Plus plan can also send bills on WhatsApp.

A simple monthly GST routine

1. Daily: close the day on your POS and check cash and UPI against the sales report.
2. Weekly: review any cancelled bills and discounts with your manager.
3. Month end: export the GST and item reports and send them, with purchase bills, to your CA.
4. Every quarter: ask your CA if anything has changed in rates or rules that affects your setup.

When to call your CA

Talk to your accountant before you open, when you add catering or packaged retail items, when you open a second outlet, when your turnover grows significantly, or whenever you are unsure about a rate. A short call costs far less than fixing a year of incorrect bills.

Make clean GST bills from day one

Good habits are easiest to build with the right tool. KiwiTri POS runs in the browser on a phone, tablet or PC and has a 2-day free trial, no card needed. Try it free and show your CA the sample bills, or view pricing.

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