GST is the line on the bill guests read twice, and the one an inspector reads first. Getting it right is mostly about a few rules applied the same way on every bill.
The rate: usually 5%, without input tax credit
Most restaurants in India charge 5% GST without input tax credit. A restaurant inside a hotel where any room's declared tariff is above ₹7,500 a night charges 18% with input tax credit instead. Set the rate on each dish rather than once for the whole menu, so the occasional item with a different rate is handled without a workaround.
CGST and SGST, half each
GST on a sale inside your state is printed as two halves: CGST for the centre and SGST for the state. At 5%, that is 2.5% CGST and 2.5% SGST on the taxable value. A sale to another state is IGST instead. Your books should hold each half in its own payable account, so the return is a sum, not a reconstruction.
What a tax invoice must show
- Your name, address and GSTIN
- A consecutive invoice number and the date
- The HSN / SAC code
- Taxable value, and the rate and amount of CGST and SGST shown separately
- Place of supply
- The guest's GSTIN when they are a registered business
Rounding to the rupee
Section 170 of the CGST Act allows tax to be rounded to the nearest rupee. Show the round-off as its own line on the bill, and book it, so the bill total and the books agree to the paisa.
Service charge
Consumer Protection (CCPA) guidelines say a service charge must not be added to the bill automatically, and a guest may ask for it to be removed. Most restaurants now leave it off by default.
When you must register
Registration is compulsory above ₹20 lakh turnover (₹10 lakh in special category states).
Filing without re-typing
GSTR-1 and GSTR-3B ask for your sales by rate, with CGST and SGST, and business bills with the guest's GSTIN listed apart. If every bill already carries its tax lines, that summary is a report, not a weekend of spreadsheets.
In Feazio, GST is set per dish, printed as CGST and SGST, rounded to the rupee and posted to CGST and SGST payable accounts with every bill. The GST summary by rate, with B2B bills counted apart, is ready for your CA. Try it with the free GST calculator.
This is general information, not tax advice. Rates and rules change; confirm with your CA.