Opening a Café or Restaurant in Manali or Kasol: Licences, GST and Accounts Checklist

To open a café or restaurant in Manali, Old Manali, Kasol or anywhere in the Kullu valley, you need a place you are allowed to use, a food licence from FSSAI, local permission from the municipal council or panchayat, labour registration, and GST once you cross the limit, plus a fire NOC, pollution consent, a music licence or a bar licence depending on what you run. This checklist puts them in the order that saves money, with the GST and income tax points that catch new owners in their first season.

Step 1: the premises

• Leasing in a town: taking a shop or building on lease inside a municipal area does not need section 118 permission. Get the lease registered and make sure it allows food business use.
• Buying, or leasing in a village: if you are not a Himachali agriculturist, read our section 118 guide first. A café built on land that was never cleared can be lost along with the building.
• Building use: check that the building is approved for commercial use under the local planning rules before you spend on the fit-out.

Step 2: the business structure

Most single cafés start as a proprietorship. Partners who are putting in money together are better off as an LLP or a private limited company, which keeps each partner’s share and liability clear when the season goes badly. A foreign national cannot run a café in India on a tourist visa, and putting the business in a local friend’s name is a risk for both of you; if a foreigner is involved, set up the entity and the visa properly from the start.

Step 3: the licences

Licence or registration	Who needs it	From whom
FSSAI registration	Every food business with turnover up to ₹12 lakh a year	FSSAI (FoSCoS portal)
FSSAI state licence	Turnover above ₹12 lakh a year	FSSAI (FoSCoS portal)
Trade licence or NOC	Every eating place	Municipal Council in Manali town; gram panchayat in villages such as Kasol or Vashisht
Shops and establishments registration	Any café with staff	HP Labour Department
Fire NOC	Larger premises and those with gas banks or many covers	HP Fire Services
Consent to establish and operate	Depending on size, kitchen and effluent	HP State Pollution Control Board
Music licences	Playing recorded music to customers	PPL and IPRS
Bar licence	Serving liquor	HP State Taxes and Excise Department

Apply for FSSAI first: it is quick, and the other offices often ask for it. Put the FSSAI number on your menu and bills.

Step 4: GST

• When to register: once turnover crosses ₹20 lakh in a year. Most valley cafés cross it in their first full season.
• Rate: a standalone café or restaurant charges 5% with no input tax credit. A restaurant inside a hotel that is a “specified premises” charges 18% with credit; see our GST guide for Manali hotels and homestays.
• Composition scheme: restaurants with turnover up to ₹1.5 crore in Himachal can opt for composition at 5% of turnover with quarterly payments. The rate is the same, but you cannot charge GST on your bills and must pay it from your margin, so compare both before you choose.
• Swiggy and Zomato orders: for food delivered through these apps, the app pays the GST to the government, not you. Keep those sales separate in your books so they are not taxed twice.
• Returns: file every month or quarter, including the off-season months.

Step 5: staff, books and income tax

• ESI applies from 10 employees and PF from 20. Seasonal staff count while they are on the roll.
• Take most payments by UPI or card and keep the daily cash sheet. Digital receipts can be taxed on a lower presumptive profit rate (6% instead of 8%) if you use the presumptive scheme for small businesses.
• Your UPI, card and app settlements show up in your AIS. File the income tax return on time and make sure the turnover matches.

The order that saves money

1. Check the land or building and the lease or section 118 position.
2. Choose the structure and open a current account.
3. Apply for FSSAI, then the trade licence or panchayat NOC and labour registration.
4. Fire, pollution and music licences as your size and plans require.
5. GST registration before you cross ₹20 lakh, or straight away if you sell on Swiggy and Zomato or want to open a bar.
6. Bar licence last, once everything else is in place.

Frequently asked questions

Do I need an FSSAI licence for a small café in Kasol?

Yes. Every food business needs at least FSSAI registration. Above ₹12 lakh turnover a year you need an FSSAI state licence instead.

What is the GST on café food in Manali?

5% without input tax credit for a standalone café or restaurant. Restaurants inside a hotel that counts as a specified premises charge 18% with credit.

Can a café in Himachal opt for the composition scheme?

Yes, if its turnover is up to ₹1.5 crore. It pays 5% of turnover, files quarterly, and cannot charge GST to customers.

Can I open a café in Manali if I am not from Himachal?

Yes. Leasing premises in a town is the simplest route. Buying land or leasing in a village needs section 118 permission first.

Do I need a music licence to play songs in my café?

Playing recorded music to customers is a public performance, which needs licences from the bodies that hold those rights, usually PPL and IPRS.

Open with the paperwork done

TAXAJ handles FSSAI licences, GST registration, music licences and the books for cafés and restaurants across the Kullu valley. See our food business services, or talk to our Manali team.

Last updated 16 October 2026. Sources: Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011; GST rate notifications for restaurant services as amended with effect from 22 September 2025; section 10 of the CGST Act and the Himachal Pradesh composition limit; section 118, HP Tenancy and Land Reforms Act, 1972. Local licence requirements vary by premises; check with the local body before you open.