When running a restaurant in India, it is evident that your restaurant is registered with major food delivery platforms like Zomato, Swiggy, and Food Panda to deliver food to your customers. 

The Indian GST Council has announced introducing the new GST taxes to all the food delivery platforms and cloud kitchens from 1st January 2022. 

 food delivery platforms and cloud kitchens from 1st January 2022.

Lately, we have discussed the same with many restaurant owners utilizing our POS billing software. There are many unregistered restaurants with a turnover of 20lakhs and less, who have been delivering food via food aggregator channels but are not paying taxes to the government. 

After 1st January 2022, the unregistered restaurant owners will start paying taxes to deliver their food to the end consumers. The shift in the GST tax shall impact the restaurant’s and food delivery model’s books of accounts and not the end customers. 

The restaurant owners must now manage smart invoicing differently for end customers and food delivered via food delivery platforms. In short, POS software for restaurants and cafes might help manage the same.

Does your POS billing app generate tax reports?

Running a restaurant or a cafe?

One of the most popular businesses in India is the ‘food business’ for sure. Undoubtedly, the food industry is doing well because Indians love to eat delicious and different food items. When stepping into a food business, you have a wide range of choices to set up your domain, such as running a cafe, cloud kitchen, family restaurant, fine dining, pub or bar, fast food stall, food delivery model, hybrid restaurant, and bistro. 

Selecting any of these domains will lead you straight to the cash business market, which is the food industry. The food industry is considered the cash business industry as you get daily cash collection from the customers, unlike other businesses where invoices are issued with a payment due date.  Therefore most business owners choose to enter the food or restaurant industry anticipating daily cash collection, which is incredible. 

Well, if you are also operating the food business via a cafe, restaurant, or a cloud kitchen, you will have to maintain proper books of accounts to differentiate the invoicing for the final customers and the food delivery platforms. Therefore, it is advisable to have POS billing software for managing all the invoices, sales, and inventory via a single dashboard. 

Here is the current GST tax slab for the Indian restaurants and cafes

GST tax slab for the Indian restaurants and cafes

Why POS software for restaurants & cafes?

Whether you manage your restaurant bills with traditional online billing software, free restaurant billing software, or smart POS billing software- you will have to manage your invoices smartly from 1st January 2022. The new GST tax rate introduced for food delivery platforms will curb the restaurant’s revenue. But yes, if you have a smart restaurant’s POS software, you can keep an eye on the overhead expenses and can control the expenses to balance the curbed revenue. 

A POS billing software helps the restaurant owner to have a complete overview of the ongoing orders on the tables, including the running business and inventory. It helps notify the admin of inventory shortage to avoid issues during the running or business hours. The POS software for cafes is also the best way to watch your business’s performance by downloading various business reports. 

Moon POS, a free restaurant billing software, keeps your business updated with sales, profit and loss, purchase, and tax reports. Just a single click, and you shall have your reports right in front of you. You can do more with Moon POS, such as time-tracking for ongoing projects, smart invoicing, etc. 

For any other information related to Indian GST tax, you must log on to https://www.gst.gov.in. The website has all the important links for Indian business owners and professionals related to taxation.

Also Read: Top 10 POS Billing Software for Restaurant and Retail