Article · 20 min read
How to start a restaurant in India: licences, GST and tax
CalcGuru · calcguru.in Free Intermediate India
An August 2026 guide to the restaurant licence stack: FSSAI on the new turnover slabs, a trade or health licence, fire clearance, pollution consent, Shops and Establishment, liquor, music and signage licences, and why a standalone restaurant pays 5% GST with no input credit. Notes that Delhi abolished the police eating-house licence in June 2025.
- A standalone restaurant is fixed at 5% GST without input credit.
- The GST threshold for restaurant service is Rs 20 lakh, not Rs 40 lakh.
- Licensing below FSSAI and GST is municipal and state: check your city's portal.