Friday, December 19, 2025
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Do Small Restaurants Need GST? Rules, Exemptions, and Risks Explained

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For many small restaurant and café owners, GST registration feels like an added burden. But the real answer to whether it’s “okay” to skip GST depends on your turnover, your partnerships, and how you run your business.

When Restaurants Can Avoid GST Registration

Restaurants are not required to register under GST if:

  • Their annual turnover is below ₹20 lakh (₹10 lakh in North-Eastern and hill states).
  • They do not sell via online food delivery platforms like Zomato, Swiggy, Uber Eats.
  • They run purely offline, serving walk-in customers only.

Example: A small tea shop or dhaba making ₹8–10 lakh annually from local customers doesn’t need GST.

When GST Registration Becomes Compulsory

Even if your turnover is below the threshold, you must register for GST if:

  • You sell food through delivery aggregators (Zomato, Swiggy, etc.).
  • You own a franchise outlet (like Domino’s, KFC, Subway).
  • You operate as part of a hotel with room tariffs above ₹1,000.

In these cases, skipping GST isn’t allowed, and non-compliance can lead to penalties.

Penalties for Not Registering Under GST

Failing to register when required can be risky:

  • 10% penalty of the tax due (minimum ₹10,000).
  • Possible delisting from delivery apps.
  • Legal notices and interest on unpaid GST.

Why Voluntary GST Registration May Still Help

Even if not compulsory, some small restaurants choose to register because it:

  • Adds credibility — customers trust bills with GST.
  • Enables growth — easier to partner with apps, expand into new markets.
  • Future-proofs the business — once turnover crosses ₹20 lakh, you’re already compliant.

Conclusion

So, is it okay for restaurants to not register under GST? Yes, but only if you stay under the turnover limit and operate purely offline. If you’re planning to scale, partner with delivery apps, or expand into franchises, GST registration isn’t just mandatory — it’s a business enabler.

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Do Food Trucks Need GST in India? Rules, Tax Slabs & Penalties Explained

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SnackTeam
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Food trucks are booming in India, offering quick, affordable meals with the flexibility of mobility. But along with growing popularity comes the question: Do food trucks need to register under GST? The answer isn’t one-size-fits-all — it depends on turnover, business model, and whether they partner with delivery apps.

GST Registration Rules for Food Trucks

Food trucks are treated like any other restaurant business under GST. That means:

  • Turnover threshold: If annual sales cross ₹20 lakh (₹10 lakh in North-Eastern and hilly states), GST registration is mandatory.
  • Aggregator sales: Even if turnover is lower, food trucks must register if they sell through Swiggy, Zomato, or other delivery apps.
  • Local-only operations: A single food truck serving only local customers and earning less than ₹20 lakh a year does not need GST registration.

👉 Example: A taco truck in Bengaluru making ₹15 lakh annually without online deliveries can skip GST. But if the same truck lists on Swiggy, GST becomes compulsory.

GST Rates for Food Trucks

Food trucks fall under the same slab as standalone restaurants:

  • 5% GST (without ITC) → Applicable to dine-in, takeaway, and delivery orders.
  • No Input Tax Credit (ITC) allowed under this 5% rate.

Why GST Registration Helps Food Trucks

Even when not mandatory, many food truck owners choose voluntary GST registration because it:

  • Builds credibility with customers and corporates hiring them for events.
  • Enables partnerships with delivery apps.
  • Prepares for scaling into multiple trucks or franchises.

Penalties for Non-Compliance

Operating without GST when eligible can lead to:

  • 10% penalty of tax due (minimum ₹10,000).
  • Loss of digital sales channels (Swiggy, Zomato delisting).
  • Legal issues during inspections.

Conclusion

So, do food trucks need GST registration? Yes, if turnover exceeds ₹20 lakh or if they sell online. For small local trucks operating below the threshold, GST may not be mandatory — but voluntary registration can open doors to growth.

For food truck entrepreneurs eyeing scale, GST isn’t just compliance — it’s a ticket to bigger business.

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GST Rules for Restaurants and Hotels in India: Tax Slabs, Registration & Compliance Explained

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SnackTeam
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If you run a restaurant, café, or hotel in India, chances are GST compliance is as important as your menu or service quality. Since the rollout of Goods and Services Tax (GST) in 2017, the food and hospitality industry has had to navigate evolving rules, changing tax slabs, and mandatory registration requirements. Whether you own a family-run dhaba, a quick-service chain, or a luxury hotel, understanding GST is critical to staying profitable and legally compliant.

GST Registration Rules for Restaurants and Hotels

The most common question business owners ask is: Do I need to register for GST? The answer depends on turnover and operations:

  • Turnover threshold: Restaurants and hotels with an annual turnover above ₹20 lakh (₹10 lakh in North-Eastern and hill states) must register under GST.
  • Food delivery apps: Even if turnover is lower, registration is mandatory if the business partners with online aggregators like Swiggy, Zomato, or Uber Eats.
  • Hotel businesses: GST applies if the room tariff per day exceeds ₹1,000. Lower tariffs are exempt.

👉 Example: A dhaba in Punjab earning ₹12 lakh yearly with only walk-in customers may avoid GST. But the same dhaba listed on Zomato would need compulsory registration.

GST Rates for Hotels and Restaurants

GST rates vary based on the type of service and establishment:

  • Standalone restaurants (non-AC/AC, dine-in or takeaway): 5% GST (without Input Tax Credit).
  • Restaurants inside hotels with room tariffs above ₹7,500: 18% GST (with Input Tax Credit).
  • Hotels:
    • Room tariff ₹1,000 or less → Exempt
    • ₹1,001 – ₹7,500 per night → 12% GST
    • Above ₹7,500 per night → 18% GST

👉 Example: Ordering a thali from your neighbourhood mess attracts 5% GST, while booking a five-star hotel room in Delhi with ₹8,000 tariff attracts 18%.

Input Tax Credit (ITC) Rules

One major change after 2017 is ITC restrictions:

  • Standalone restaurants: Cannot claim ITC at the 5% rate.
  • Hotel restaurants (with 18% GST): Can avail ITC, making it beneficial for larger establishments with higher operational costs.

This distinction often determines pricing strategies for chains like Barbeque Nation versus standalone eateries.

Compliance and Penalties

Non-compliance with GST rules can invite:

  • 10% penalty of the tax due (minimum ₹10,000).
  • Higher penalties for deliberate tax evasion.
  • Risk of delisting from food delivery platforms.

For businesses relying heavily on online orders, this can mean losing significant revenue.

Why GST Matters for Restaurants and Hotels

Beyond tax liability, GST compliance adds value to businesses:

  • Credibility: Customers trust bills with clear GST charges.
  • Digital partnerships: Delivery apps and OTAs (like MakeMyTrip) insist on GSTIN.
  • Business expansion: Franchises, investors, and banks favour compliant businesses.

Conclusion: GST Is the New Cost of Doing Business

For India’s hospitality industry, GST is here to stay. From OYO hotels in tier-2 cities to McDonald’s outlets in metro malls, compliance ensures smooth operations and customer trust. Small owners may see GST as paperwork, but in reality, it’s the gateway to scaling, securing partnerships, and competing with bigger brands.

If you’re planning to open or expand a hotel or restaurant, make GST registration part of your business plan — not an afterthought.

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Ex-Sequoia India investor Shubham Poddar raises $3M for Amaani; Arab beauty brand AÏZA crosses $2M revenue in debut year

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SnackTeam
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Amaani, a consumer startup rooted in Middle Eastern beauty and wellness traditions, has raised $3 million in seed funding to build its debut brand, AÏZA. The round was led by Peak XV’s Surge, earlier known as Sequoia Capital India & SEA, marking its first consumer and seed-stage investment in the MENA region.

Amaani was founded by Shubham Poddar, a former Sequoia India investor who played a key role in expanding the firm’s presence in the Middle East across fintech, foodtech and proptech. With AÏZA, Poddar has set out to create a modern Arab beauty label that blends regional heritage with advanced global formulations.

Launched online in May 2025, AÏZA draws on ingredients deeply tied to Arab culture, including dates, black seed, and bakhoor, while incorporating clinical actives developed in labs across Korea, Japan and Italy. Among its first products are Sukkar Rush, a lip treatment infused with date and honey; Scent Storm, a bakhoor and rose hair mist; and Date Setter, a brow and lash serum using date seed and castor oil.

The brand has already recorded more than $2 million in annualised revenue, buoyed by early traction in the UAE and Saudi Arabia, two of the world’s highest-spending beauty markets. “For decades, the Middle East has powered global brands. The world is now looking here for innovation,” said Poddar.

Industry data highlights the opportunity. The GCC beauty and personal care market is estimated at $12 billion and expanding at over 12 percent annually, according to Peak XV Managing Director GV Ravishankar. With rising digital penetration and growing demand for locally resonant products, Amaani plans to scale AÏZA regionally and globally while building a wider portfolio of brands inspired by Modern Arabia.

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Ibrahim Ali Khan Joins Wrogn: Aditya Birla’s Youth Brand Kicks Off ‘Wrogn. But Real.’ Campaign to Woo 150M+ Gen Z and Millennials in India

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SnackTeam
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Youth fashion brand Wrogn, part of Aditya Birla’s TMRW portfolio, has launched its latest nationwide campaign featuring Bollywood actor Ibrahim Ali Khan. Titled “Wrogn. But Real.”, the initiative focuses on encouraging young Indians to embrace individuality and imperfections in a culture often defined by polished appearances and constant pressure to perform.

The campaign film, released across digital and retail platforms, positions authenticity as the new marker of style. In the film, Khan delivers a pointed message that resonates with India’s Gen Z and millennials: perfection is overvalued, and real confidence comes from being unapologetically oneself.

Since its launch in 2014, Wrogn has carved out a distinct space in India’s fast-fashion market by appealing to young shoppers with its bold designs and unorthodox messaging. With “Wrogn. But Real.”, the brand is building on that ethos, aiming to further strengthen its connection with urban youth who increasingly seek brands that stand for values beyond clothing.

Anjana and Vikram Reddy, co-founders of Wrogn, said the campaign reflects the brand’s core philosophy of courage, authenticity and freedom of expression. “Young people today face tremendous pressure to fit in. Through this campaign, we want to remind them that style is not about conforming but about celebrating what makes you unique,” they noted.

For Ibrahim Ali Khan, who has quickly emerged as a youth icon, the association is personal. “Wrogn doesn’t try to put you in a box. It’s real, raw and imperfect, which is exactly how I view fashion. This campaign is about being effortless and unfiltered,” he said.

The campaign will be visible across digital, social media and retail touchpoints nationwide, reinforcing Wrogn’s position as one of India’s most influential youth-centric fashion brands.

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Sourav Ganguly Teams Up with Myntra to Launch ‘Souragya’; Brand Debuts with 100 Styles Ahead of Festive Season as India’s Ethnic Wear Market Eyes $558 Billion by 2033

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SnackTeam
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Former Indian cricket captain Sourav Ganguly has taken his first formal stride into the fashion business with the launch of “Souragya,” a premium ethnic wear brand created in collaboration with Myntra. The line debuts just ahead of Durga Puja and Diwali, festivals that typically fuel a sharp rise in apparel sales.

The brand will launch with close to 100 styles, available exclusively on Myntra’s app and website. The debut collection combines Bengal’s craft traditions with contemporary tailoring, featuring Kantha embroidery, Tant and Jamdani weaves, and Batik prints. Signature designs include kurta–dhoti sets, sherwanis paired with churidars, and kurta ensembles for festive occasions.

“This brand is about celebrating our heritage while presenting it in a way that resonates with today’s fashion-forward generation,” Ganguly said at the launch. “Myntra’s expertise has been vital in bringing this vision to life, ensuring Souragya blends timeless Indian design with accessibility and versatility.”

The timing reflects both cultural and commercial opportunity. India’s apparel market, valued at US$102.8 billion in 2022, is projected to touch US$146.3 billion by 2032, according to India Brand Equity Foundation. Within that, ethnic wear is among the fastest-growing categories. Business Research Insights estimates the segment at US$197.2 billion in 2024, with forecasts of US$558.5 billion by 2033, implying a compound annual growth rate of 12.6 percent.

Myntra, through its wholesale arm Myntra Jabong India, sees Souragya as a strategic addition to its House of Brands portfolio. “With the festive season beginning, Souragya offers customers an elevated take on ethnic fashion rooted in Bengal’s artistry,” said Suman Saha, CXO and Head of House of Brands.

For Ganguly, who redefined Indian cricket through leadership, this marks a fresh innings in entrepreneurship, positioning his cultural roots at the heart of a growing fashion market.

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“MTR Maker Orkla India Cleared for Market Debut: 22.8 Million Shares to Hit Street in Rs 5,000 Crore IPO, Entire Stake Sale by Norway’s Orkla ASA”

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SnackTeam
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Orkla India Limited, the company behind household food brand MTR, has secured the green light from the Securities and Exchange Board of India (SEBI) to launch its initial public offering. The filing shows the IPO will be a complete offer for sale of 22,843,004 equity shares by its Norwegian promoter group. The selling shareholders include Orkla ASA, Orkla Asia Holding, and Orkla Asia Pacific Pte. Ltd.

Although pricing details are yet to be announced, investment banking sources said the public issue could raise between Rs 4,000 crore and Rs 5,000 crore, depending on final valuations and investor appetite. If it meets those estimates, it would mark one of the largest IPOs in India’s packaged food space in recent years.

Headquartered in Bengaluru, Orkla India has steadily expanded its portfolio beyond traditional packaged spices and ready mixes. Under the MTR Foods label, the company now operates across multiple categories, including blended and pure spices, breakfast mixes, ready-to-cook meal kits, and ready-to-eat packaged foods. MTR traces its origins back to 1924 as a small restaurant in Bengaluru before being acquired by Norway’s Orkla ASA in 2007, which helped transform it into a national packaged food powerhouse.

The proposed listing comes at a time when India’s packaged food market is witnessing accelerated growth. Industry estimates project the sector to expand at a compound annual growth rate of nearly 9 percent, driven by rising urban incomes, demand for convenience foods, and deeper penetration into Tier-II and Tier-III cities. Analysts say the IPO will test investor appetite for consumer food companies in a crowded but rapidly growing market.

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From mugs to cushions in half an hour: Tarun Joshi’s IGP deploys personalisation tech to disrupt India’s $65 bn gifting industry

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SnackTeam
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Online gifting company IGP has unveiled a hyperlocal model that promises to deliver personalised products in just 30 minutes across more than 30 cities, in what could be a turning point for India’s rapidly growing direct-to-consumer gifting market.

The initiative is powered by the deployment of compact personalisation machines in IGP’s network of dark stores, a move designed to cut production times and reduce reliance on centralised warehouses. By embedding production closer to the customer, the company aims to combine speed, scale, and customisation.

According to the company, the new format enables delivery of over 250 types of personalised products – including mugs, cushions, keychains, stationery and home décor items – within half an hour. A wider catalogue of more than 600 products can be fulfilled on the same day.

“The gifting industry has always wrestled with the trade-off between thoughtfulness and speed. We have combined technology, logistics, and creativity to make personalisation as fast as it is meaningful, because emotions shouldn’t have to wait,” said Tarun Joshi, Founder and Chief Executive Officer of IGP.

India’s online gifting segment has witnessed accelerated growth in the last five years, driven by increased internet penetration, a culture of instant gratification, and rising demand for personalised experiences. Industry estimates place the Indian gifting market at over USD 65 billion, with personalised gifting accounting for nearly a fifth of this demand.

By introducing rapid delivery for custom products, IGP is betting on differentiation in a crowded market that includes players like Ferns N Petals and Archies, as well as e-commerce giants Amazon and Flipkart. The company believes the new model could set new benchmarks for customer expectations in time-sensitive occasions such as birthdays, festivals, and anniversaries.

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Pizza Hut India Elevates Manish Guptaa to CMO; To Drive Value Deals, Innovation and Gen Z Campaigns While Retaining Tech Mandate

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Pizza Hut India, part of Yum! Brands, has appointed Manish Guptaa as its new Chief Marketing Officer (CMO), handing him the responsibility of steering the brand’s marketing and consumer strategy at a time when competition in the quick service restaurant (QSR) segment is intensifying.

Guptaa, who has been with the company since 2019, was previously serving as Chief Digital and Technology Officer. While he takes charge of marketing, he will continue to manage the technology and digital portfolio until a successor is identified.

His new mandate includes expanding Pizza Hut’s value-led offerings, launching product innovations tailored for Indian consumers, and building sharper campaigns aimed at younger audiences such as millennials and Gen Z. The company said Guptaa will also focus on enhancing cultural relevance and shaping the brand’s next phase of growth in one of the world’s fastest-growing food service markets.

Rohan Pewekar, Managing Director, Pizza Hut Indian Subcontinent, said the company is confident that Guptaa’s leadership will further strengthen the brand’s position in India. “We are excited to see him take on the role of CMO and build on our ambition of being the first choice for today’s consumers,” he added.

During his tenure at Pizza Hut, Guptaa has overseen several digital-first initiatives. These include scaling the brand’s online commerce operations, building a performance marketing engine, and embedding data-driven insights into decision-making. The company noted that these efforts helped accelerate customer acquisition and deepen loyalty.

Pizza Hut operates more than 800 restaurants across India. With the QSR market projected to cross 1.5 trillion rupees by 2026, the company is betting on Guptaa’s combined expertise in technology and marketing to sharpen its competitive edge.

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Palm Oil Flows Into India at 13-Month High as Imports Touch 990,528 Tons in August; Sunflower Oil Gains, Soyoil Slides, Canola Oil Returns After 5 Years

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SnackTeam
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India’s palm oil imports soared in August to their highest in more than a year, as refiners rushed to secure supplies ahead of the festive season, lured by palm oil’s price advantage over soyoil. The rise is expected to ease excess stockpiles in Indonesia and Malaysia, the world’s top producers.

According to data released by the Solvent Extractors’ Association of India (SEA) on Monday, palm oil shipments into the country rose nearly 16% month-on-month to 990,528 metric tons, marking the highest level since July 2024.

The surge came at the expense of soyoil, with imports of the soft oil plunging 25% to 367,917 tons, the lowest in four months. Sunflower oil, however, staged a strong rebound, with imports climbing 28.5% to 257,080 tons — a seven-month peak.

In a notable development, India also imported 6,000 tons of canola oil in August, its first significant purchase of the commodity in nearly five years.

Overall edible oil imports rose 4.7% month-on-month to 1.62 million tons, also the highest since July 2024. The SEA noted that refiners have stepped up stocking to meet expected demand spikes during the September–November festive window, when consumption of fried foods and sweets rises sharply.

India, the world’s largest importer of vegetable oils, sources palm oil mainly from Indonesia and Malaysia, while soyoil comes from Argentina and Brazil, and sunflower oil largely from Russia and Ukraine.

Trade sources estimate that palm oil imports will remain above 800,000 tons in September as festive demand peaks. SEA data also showed that India imported 589,283 tons of duty-free edible oils from Nepal between November 2024 and July 2025, under a regional trade pact.

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