Home bakers, small food businesses, and cloud kitchens have flourished in recent years. But when your business grows, GST registration and compliance become mandatory.
Here’s what you need to know about GST for home-based food entrepreneurs and online kitchen operators.

1️⃣ GST Registration Requirements

You must register under GST if:

• Annual turnover exceeds ₹20 lakh (₹10 lakh in special category states).

• You sell through platforms like Zomato, Swiggy, or Dunzo.
  (In this case, registration is mandatory regardless of turnover.)

2️⃣ GST Rate on Food Items

• Most baked and prepared foods attract 5% GST without ITC if served without dining.

• If operating as a restaurant or cloud kitchen with takeaway, the applicable rate is 5% (no ITC).

• For packaged or branded foods, GST rates may vary from 5% to 18%, depending on the item.

3️⃣ Invoicing and Record-Keeping

• Include GSTIN, HSN codes, and proper item descriptions on invoices.

• Maintain digital records of ingredients purchased to claim ITC (if applicable).

4️⃣ Input Tax Credit for Bakers

If you charge 18% GST on premium goods (e.g., cakes, chocolates, catering), you can claim ITC on:

• Ingredients, packaging, kitchen equipment, and delivery services.
  However, for 5% GST, ITC is not available.

5️⃣ Compliance Tips

• File GSTR-1 and GSTR-3B regularly, even during off-seasons.

• Maintain separate accounting for home and business expenses.

• If selling through food aggregators, ensure you reconcile orders with aggregator GST statements monthly.

GST compliance for home bakers and cloud kitchens doesn’t have to be complex. Understand your GST rate, maintain accurate invoices, and file returns on time.
With clear records and correct registration, your small business can stay fully compliant and grow confidently.

Continue reading:
GST for E-commerce Sellers (Amazon, Flipkart, etc.)
Complete Guide to Input Tax Credit (ITC) under GST
GST for Home Bakers & Cloud Kitchens (2025 Guide)
How to Apply for GST Refunds & Track Application Status
ITC Not Allowed? 10 Expenses You Can’t Claim Credit For (2025 Update)
Common GST Filing Mistakes Small Businesses Make (and How to Fix Them)