Feedo is a comprehensive restaurant management SaaS platform designed for Indian restaurants. It includes POS system, online ordering, table booking, inventory management, GST-compliant billing, and multi-branch support.

Is Feedo POS system GST compliant?

Yes, Feedo is fully GST compliant. It generates GST invoices, maintains proper tax records, and supports all GST rates including CGST, SGST, and IGST for restaurant businesses in India.

Can I use Feedo for multiple restaurant branches?

Absolutely! Feedo supports multi-branch restaurant management. You can manage multiple locations, track inventory across branches, and get consolidated reports from a single dashboard

Does Feedo support online food ordering?

Yes, Feedo includes a complete online ordering system. Customers can browse your menu, place orders, make payments online, and track their orders. It integrates seamlessly with your POS system.

Does Feedo work on mobile devices?

Yes, Feedo is fully responsive and works on all devices including smartphones, tablets, and desktops. It also has PWA (Progressive Web App) capabilities for app-like experience.

Is there a free trial available?

Yes, Feedo offers a free trial so you can test all features before making a commitment. Sign up to explore the complete restaurant management system risk-free.

GST for Restaurants in India 2026 – Complete Guide, Rates, ITC, Billing & Compliance

Running a restaurant in India involves much more than great food and good service. Behind the scenes, there’s inventory to track, staff to manage, and the part many owners dread GST compliance. If GST still feels confusing or overwhelming, this 2026 guide will make everything clearer.

Whether you operate a cozy café, a fine-dining restaurant, or a multi-branch chain using Feedo, understanding GST rules is essential for smooth financial management and legal compliance. Let’s simplify it step by step.

What Is GST & Why It Matters for Restaurants

Introduced in 2017, the Goods and Services Tax (GST) replaced multiple indirect taxes like VAT, service tax, and luxury tax. Today, it serves as a unified tax structure across the country.

For restaurant owners, GST directly influences:

Your pricing strategy
Profit margins
Tax liabilities
Customer billing
Input credit eligibility

Getting your GST setup right ensures transparency, avoids penalties, and keeps operations running smoothly.

GST Rates for Restaurants in 2026

Following the 56th GST Council Meeting, updated GST rates came into effect on September 22, 2025. Here’s what applies in 2026:

1. Standalone Restaurants

GST Rate: 5% (without ITC)

Applicable for:

Dine-in orders
Takeaway
Home delivery

You cannot claim Input Tax Credit (ITC) under this rate. This means GST paid on your raw materials or equipment cannot be adjusted against GST collected.

2. Restaurants Inside Hotels

Hotel restaurants follow a slightly different structure:

Hotels with room tariff below ₹7,500/night:

5% GST
No ITC

Hotels classified as “Specified Premises” (₹7,500+ room tariff):

18% GST
ITC allowed

Important:
If your hotel charged above ₹7,500/night in FY 2024–25, your restaurant will fall under the 18% GST category for all of FY 2025–26, even if you reduce room pricing later.

Special Categories

CategoryGST RateITC
Railway catering (IRCTC) | 5% | No ITC
Outdoor catering (non-specified premises) | 5% | No ITC
Outdoor catering in specified premises | 18% | ITC allowed
Food delivery platforms | 18% | ITC allowed

GST on Ingredients & Supplies You Purchase

Restaurants also pay GST on the items they buy. Several changes made essential goods more affordable:

Items at 0% GST

UHT milk
Pre-packaged paneer
Pizza bread, khakhra, chapati, roti
Paratha & parotta

Items Reduced to 5%

Butter and cheese
Refined sugar & confectionery
Dry fruits & nuts
Fruit & vegetable juices
Pasta & extruded snacks
Cocoa products & chocolates

Items with Increased GST

Pan masala → 40%
Sugary & carbonated beverages → 40%
Flavoured/caffeinated drinks → 40%

Fresh vegetables, fruits, milk, fish, and meat remain GST exempt.

Understanding Customer Bill Components

A customer bill usually includes:

Base food cost
GST (5% or 18%)
Service charge (optional)

Service charge is not a tax it’s your restaurant’s income. It must always be shown separately from GST.

How Feedo Helps You Stay GST Compliant

Using Feedo gives restaurant owners a strong advantage:

Automatic GST Calculation

Correct rates applied across dine-in, delivery, and takeaway.

GST-Compliant Invoices

Includes GSTIN, tax breakup, itemized amount, and final total.

Branch-wise Tax Management

Perfect for restaurant chains and cloud kitchens.

Integrated POS

GST remains consistent across all order channels.

Detailed GST Reports

Track GST collected, payable, and ITC claims (if applicable).

Do You Need GST Registration?

GST registration is mandatory if your annual turnover exceeds:

₹20 lakhs, or
₹10 lakhs (special category states)

Even below this limit, voluntary registration can boost credibility.

Steps to Register for GST

Visit gst.gov.in
Fill out the online application
Upload documents:
- PAN & Aadhaar
- Business address proof
- Bank details
- Photograph & signatures
Receive GSTIN in 3–7 working days

Composition Scheme for Small Restaurants

If turnover is below ₹1.5 crore, you may opt for this scheme:

Lower fixed tax rate
Minimal paperwork
No ITC
Must display “Composition Taxable Person” at your restaurant

GST Filing Requirements for Restaurants

Missing deadlines attracts daily penalties, so set reminders or rely on Feedo’s notifications.

Common GST Mistakes Restaurants Should Avoid

Charging incorrect GST rates
Poor record maintenance
Combining GST & service charge
Late filings
Not claiming eligible ITC

Digital tools like Feedo reduce these errors significantly.

Impact of GST on Your Restaurant

Benefits

Simplified tax structure
Lower GST on many essentials
More transparent pricing
ITC option for 18% restaurants

Challenges

No ITC for 5% restaurants
Complex rate categories
Regular filing burden

Practical Tips for Restaurant Owners in 2026

Use automation tools like Feedo
Train your staff on basic GST rules
Display GSTIN clearly
Maintain digital invoices
Consult a CA for annual returns
Stay updated with GST Council announcements

How GST Influences Menu Pricing

Example:

Food cost: ₹100
Profit margin (60%): ₹60
Base price: ₹160
GST @ 5%: ₹8
Final price: ₹168

This structure helps keep pricing competitive and profitable.

Real-Life Example in Your Restaurant

Morning dine-in bill: ₹500 → GST @ 5% = ₹25
Vegetable delivery: No GST
Packaged paneer: 0% GST
Sugar purchase: 5% GST = ₹150
Evening orders: ₹5,000 GST collected
Month-end: Feedo prepares ready-to-file GST reports

What to Expect in GST for 2026 & Beyond

Possible rate rationalization
More digital integration in compliance
Improved clarity in classification rules
Greater automation for filings

Conclusion: Manage GST the Smart Way with Feedo

GST doesn’t have to be overwhelming. With the right tools and understanding, restaurant owners can stay compliant without stress.

Feedo helps you:

Apply correct GST automatically
Keep error-free digital records
Generate GST-compliant invoices
Manage multiple branches
Access accurate GST reports anytime

For restaurants aiming for growth in 2026, mastering GST is non-negotiable and Feedo makes that journey easier than ever.

GST for Restaurants in India (2026): Complete Tax Guide for Restaurant Owners

Key Takeaway

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Frequently Asked Questions

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