Should I choose Regular Scheme or Composition Scheme?

Choose Composition if: your turnover is under Rs 1.5 crore, you do not sell on Swiggy/Zomato, and you want minimal paperwork. Choose Regular if: you sell on delivery platforms, do inter-state catering, or want detailed invoice tracking.

Do I need to charge GST on Swiggy and Zomato orders?

No. Since January 2022, Swiggy and Zomato collect and deposit the 5% GST on delivery orders. Your restaurant should not charge additional GST on these orders. Track them separately in your billing software.

What SAC code should restaurants use on invoices?

SAC 996331 for all restaurant services including dine-in, takeaway, room service, and home delivery. Outdoor catering uses 996332. Restaurant services inside hotels with Rs 7,500+ tariff use 996333.

How do I handle cold drinks and bottled water on restaurant bills?

Packaged items like bottled water (HSN 2201, 18% GST) and cold drinks (HSN 2202, 28% GST + 12% cess) have different rates than prepared food (5%). Your billing software must calculate each item at its correct rate on the same bill.

What is a Tax Invoice vs Bill of Supply?

A Tax Invoice is issued under the Regular Scheme. It shows CGST, SGST, and SAC code separately. A Bill of Supply is issued under the Composition Scheme. It does not show tax separately because you cannot charge GST to the customer.

How often do restaurants need to file GST returns?

Regular Scheme: GSTR-1 (by 11th monthly) and GSTR-3B (by 20th monthly). Quarterly filing available for turnover under Rs 5 crore. Composition Scheme: CMP-08 quarterly and GSTR-4 annually.

What penalty do restaurants face for late GST filing?

GSTR-1 and GSTR-3B: Rs 50/day (Rs 25 CGST + Rs 25 SGST), maximum Rs 5,000 per return. Nil returns: Rs 20/day. Additionally, 18% annual interest applies on any outstanding tax from the due date.

How to Set Up GST Billing in Your Restaurant: CGST, SGST, and Invoice Guide

Q: How do I register my restaurant for GST?

Go to gst.gov.in, click Services > Registration > New Registration. Fill Part A (PAN, mobile, email) and Part B (business details, address, bank info, documents). Select SAC code 9963. Registration typically takes 3-7 working days.

Q: What is the difference between CGST and SGST?

CGST (Central GST) goes to the central government. SGST (State GST) goes to your state government. The 5% restaurant GST is always split equally: 2.5% CGST + 2.5% SGST. Both must be shown as separate line items on every invoice.

Q: Does QRCrave support full GST billing setup?

Yes. QRCrave Growth plan (Rs 1,299/mo) includes GSTIN configuration, automatic CGST/SGST split, per-item SAC/HSN codes, compliant invoice generation, mixed-rate bill calculation, order type tracking, and tax-ready export reports. 14-day free trial at qrcrave.com.

Back to BlogBilling & GSTMay 2026·18 min readHow to Set Up GST Billing in Your Restaurant: CGST, SGST, and Invoice GuideAuthor: QRCrave Editorial Team | Published: May 08, 2026 | Last Updated: May 08, 2026Setting up GST billing in a restaurant requires five things: a GST registration (GSTIN), the correct SAC code (996331 for restaurant services), CGST and SGST rates configured at 2.5% each (totaling 5%), a compliant invoice format, and billing software that handles all of this automatically. This guide walks you through each step.Most restaurant owners in India know they need to charge GST, but the actual setup process is where things get confusing. Which form do you fill? What code goes on the invoice? How do you split CGST and SGST? What about Swiggy and Zomato orders? And what happens when you sell a cold drink alongside a biryani on the same bill?We wrote this guide because these are the exact questions our restaurant partners ask when they first set up GST billing in QRCrave. Every step below includes what to do, why it matters, and how QRCrave handles it so you can get compliant faster.GST billing in QRCrave | Try QRCrave Billing FreeBefore You Start: Do You Need GST Registration?Registration is required for many restaurants based on turnover and channel mix. Platform sales through Swiggy/Zomato generally trigger mandatory registration regardless of turnover under current rules.Step 1: Register for GST on the Government PortalUse gst.gov.in registration flow, complete PAN/mobile/email validation, upload business documents, and select relevant service category. You receive ARN first, then GSTIN after approval.Step 2: Choose Between Regular and Composition SchemeYour scheme choice affects invoice format, filing cadence, and operational limits. Verify scheme eligibility with your CA before configuration.

Scheme

Best For

Key Constraint

Regular

Restaurants needing standard tax invoices and broader channel flexibility

Higher compliance workload

Composition

Eligible smaller outlets wanting simpler filing

Not suitable for many e-commerce-linked scenarios

Starter plan usersStep 3: Configure CGST and SGST in Billing SoftwareAt 5% rate, GST should be split as 2.5% CGST + 2.5% SGST. Billing should show separate line items and not a merged tax output where split is required.QRCrave's billing module | Set Up GST Billing NowStep 4: Set Up GST-Compliant Invoice FormatInvoices should include GSTIN, sequential invoice number, date, taxable value, classification, tax split, and final value. Composition cases may require Bill of Supply instead of Tax Invoice.See QRCrave invoice featuresStep 5: Handle Different GST Rates on the Same BillPrepared food and packaged goods may have different rates. Item-level mapping prevents wrong billing when mixed products are present on one invoice.QRCrave's menu managementStep 6: Configure Swiggy and Zomato Order HandlingAggregator and direct channels should be reported separately to avoid tax treatment mix-ups and double-counting risk.direct online orders | Commission-Free OrderingStep 7: Set Up GST Return FilingMaintain channel-wise sales breakup, split tax summaries, invoice details, and reconciled reporting outputs for filing discipline.QRCrave analytics and reportingStep 8: Record-Keeping and Compliance ChecklistMaintain invoices, purchase records, settlement statements, and reconciliation logs for long-term audit readiness.

Export billing data monthly.

Match totals with filing drafts.

Reconcile with bank and channel settlements.

Fix mismatches before final filing.

7 GST Billing Setup Mistakes Restaurants Make

Not splitting CGST and SGST properly.

Using incorrect SAC/HSN mapping.

Wrong handling of aggregator orders.

Applying the same tax rate to all items.

Missing required registration applicability.

Scheme mismatch with sales channels.

Manual billing without system controls.

QRCrave Starter (Rs 199/mo) | Eliminate ErrorsHow QRCrave Simplifies GST Billing for Indian RestaurantsQRCrave supports GSTIN setup, CGST/SGST auto split, item-level mapping, mixed-rate billing, order-type separation, and tax-ready exports.QRCrave billing software | QRCrave Pricing | Get StartedFrequently Asked QuestionsQ1: How do I register my restaurant for GST?
A: Complete new registration on gst.gov.in and obtain GSTIN before live billing.Q2: What is the difference between CGST and SGST?
A: Both split total GST into central and state components and should appear separately on invoices.Q3: Do I charge GST on Swiggy and Zomato orders?
A: Keep aggregator and direct channels separated and follow current platform-side tax handling rules.Q4: Can one bill contain multiple GST rates?
A: Yes, item-level mapping is required when prepared and packaged items are mixed.Q5: Does QRCrave support full GST billing setup?
A: Yes, including split taxes, mapping, mixed-rate billing, and reporting exports.Related Guides

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About This PageThis guide is published by QRCrave, a QR-based restaurant ordering and billing platform by Apaxion Technologies, Noida, India.About Us | Support | Privacy PolicyGST billing is easiest when configured as a system, not handled manually bill-by-bill. For final legal interpretation, validate with your CA or tax advisor.Get Started With QRCraveExplore More Solutions