How-to guides
How to Start a Restaurant: FSSAI, Licences and the First Month
Restaurants need more permissions than almost any other small business, and they spend money long before the first customer sits down. The good news is that the paperwork is predictable. This guide lists what you need, how GST works on a food bill, how to set up the kitchen and counter, and the numbers that decide whether a restaurant survives its first year.
Key takeaways
- Every food business needs FSSAI registration or a licence. From 1 April 2026: registration up to ₹1.5 crore turnover, state licence up to ₹50 crore, central above.
- Most restaurants charge 5% GST without input credit; a restaurant in a hotel with rooms above ₹7,500 a night charges 18% with credit.
- Local permissions such as trade, health, fire and signage licences vary by city; start them early.
- Food cost, wastage and table turnover tell you more than the sales figure.
Licences and registrations checklist
| What | Notes | Where |
|---|---|---|
| FSSAI registration or licence | By turnover: registration up to ₹1.5 crore, state licence above ₹1.5 crore up to ₹50 crore, central licence above (from 1 April 2026). Print the number on bills | FoSCoS portal of FSSAI |
| Trade or health licence | Issued by the municipal body for eating places | City corporation or municipality |
| Fire safety clearance | Depends on the size, seating and building; required for many restaurants | State fire and emergency services |
| Shops and establishments registration | As required by the state Act | State labour department |
| Eating house licence | Required from the police in some cities | City police |
| GST registration | Compulsory above ₹20 lakh turnover in most states (restaurant service is a service) | gst.gov.in |
| Liquor licence | Only if you serve alcohol; a separate state excise licence | State excise department |
| Signboard and music permissions | Signage permission from the municipality; copyright licences if you play recorded music in public | Municipality; the relevant copyright societies |
Checked on 11 November 2026 against FSSAI's order of 13 March 2026 on turnover thresholds and the CGST Act. City-level licences differ; ask your municipality which apply.
FSSAI changes in 2026
FSSAI raised its turnover thresholds from 1 April 2026 and announced that registrations and licences will no longer need periodic renewal. Check the current conditions on the FoSCoS portal when you apply.
GST on the food bill
A standalone restaurant, café, cloud kitchen or dhaba charges 5% GST (2.5% CGST + 2.5% SGST) on dine-in, takeaway and delivery, and cannot claim input credit on rent, equipment or ingredients. Price the menu knowing that GST paid on inputs is a cost. A restaurant inside a hotel whose rooms were sold above ₹7,500 a night charges 18% and can claim credit.
Orders taken through food delivery apps are taxed by the app, which collects and pays the GST; you do not charge it again on those orders. A small restaurant can also choose the composition scheme, paying 5% of turnover itself and issuing bills without GST.
Setting up the first month
- 1Build the menu in the billing system with categories, sizes (half/full), add-ons and combos, each with the right GST rate.
- 2Map the floor: areas and table numbers, so orders and bills follow the table.
- 3Set up kitchen order tickets (KOTs) by station: kitchen, bar, desserts, printed or on a kitchen screen.
- 4Agree supplier terms for vegetables, dairy and dry stores, and record every purchase.
- 5Fix a daily routine: opening stock of key ingredients, wastage log, closing cash and UPI match.
- 6Decide on service charge only as a voluntary line; consumer guidelines say it cannot be added by default.
The numbers to watch
| Number | How to work it out | Why it matters |
|---|---|---|
| Food cost % | Cost of ingredients used ÷ food sales × 100, weekly | The core margin of a restaurant |
| Wastage | Value of food thrown away, from a daily log | Hidden losses that never show on a bill |
| Average bill value | Sales ÷ number of bills | Shows the effect of add-ons and combos |
| Table turnover | Covers served ÷ seats, per service | How hard the space works at peak |
| Voids and discounts | Items voided after KOT and discounts given, by staff | Common sources of leakage |
Common mistakes
- Signing a lease before checking that the building can get fire and trade clearances
- Pricing dishes without a recipe cost
- Claiming input credit while charging 5%
- Charging GST again on delivery-app orders
- No control over voided KOTs and complimentary items
Where TripleBill fits
TripleBill's restaurant mode, on the Pro plan, gives you a table map with areas, KOTs per kitchen station on a printer or kitchen screen, dine-in, takeaway and delivery with tokens, item sizes, add-ons and combos, split, merge and move bills, service charge as its own line, and QR scan-and-order from the table, with restaurant reports including voids. It does not integrate with food delivery apps, take table reservations or track stock at recipe level yet; record app orders separately.
Frequently asked questions
Which FSSAI licence does a small restaurant need?
From 1 April 2026, FSSAI registration covers turnover up to ₹1.5 crore; a state licence is needed above that up to ₹50 crore.
What is the GST rate for restaurants?
5% without input credit for most restaurants; 18% with credit for restaurants in hotels with rooms above ₹7,500 a night.
Do I need a fire NOC?
It depends on your state's rules, the building and the seating capacity. Ask the fire department before you finalise the premises.
Do I charge GST on Swiggy and Zomato orders?
No. The delivery platform collects and pays GST on restaurant orders placed through it.
Can I add a service charge?
Only as a voluntary amount the customer agrees to; it cannot be added by default under consumer protection guidelines.
What is a KOT?
A kitchen order ticket: the order sent from the floor to the kitchen before the bill. Our article on KOTs explains how they work.
About the author
Written by the TripleBill team, the people who build the billing and accounting software this site is about. We check competitor prices on their own websites on the date shown above, and we say so when our product is the weaker choice. This article is general information, not tax advice.
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Related pages
Tables, KOTs and bills on one screen.
Restaurant mode on Pro runs the floor, the kitchen and the counter together.