Restaurant and Hospitality GST

In this article

Overview

Restaurant store flag

Restaurant items

Split bill management

Overview

Restaurants in India are subject to a different GST classification from standard retail. The India localization supports this by allowing stores and items to be flagged for restaurant use, causing the POS to apply restaurant-specific GST groups and HSN/SAC codes during sales.

Restaurant sales typically use a Services GST group (for example, 18% for restaurants) with SAC codes 996331 or 996332, rather than the Goods GST group used for standard retail sales of the same item.

Restaurant store flag

When a store is marked as a restaurant, all POS transactions at that store are treated as restaurant sales by default.

  1. Click the icon, enter Store List, and select the relevant link.
  2. Open the store you want to configure as a restaurant.
  3. On the General FastTab, enable the Restaurant toggle.

When this toggle is on, the system uses the Restaurant GST Group Code and Restaurant HSN/SAC Code from each item in the transaction, regardless of the item's standard GST configuration.

Restaurant items

Individual items can also be flagged as restaurant items independently of the store flag. This allows mixed stores (with both retail and dine-in counters) to apply the correct tax for each item.

To configure an item for restaurant sales:

  1. Click the icon, enter Items, and select the relevant link.
  2. Open the item and navigate to the Costs & Posting FastTab.
  3. Enable the Restaurant Item toggle.
  4. Set the Restaurant GST Group Code. This is typically a Services GST group (for example, 18% Restaurants).
  5. Set the Restaurant HSN/SAC Code. This field is filtered by the Restaurant GST Group Code. Common SAC codes for restaurant services are 996331 (supply of food/drinks in restaurant) and 996332 (supply of food/drinks for outdoor catering).

Note: The Restaurant HSN/SAC Code must be different from the standard HSN/SAC Code on the same item.

For a complete reference of the GST fields available on the Item Card, see Configuring Tax for Items.

Split bill management

When a restaurant bill is split between multiple customers, the India localization re-apportions GST proportionally across the split amounts. Each resulting sub-bill reflects the correct CGST, SGST, and IGST breakdown so that each customer receives a valid GST receipt.

The split is handled automatically by the LSCIN Split Bill Management codeunit. No additional configuration is required beyond enabling the standard POS split-bill functionality.