{"id":90747,"date":"2026-10-16T20:30:11","date_gmt":"2026-10-16T15:00:11","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/cafe-restaurant-manali-kasol-licences-gst\/"},"modified":"2026-10-16T20:30:11","modified_gmt":"2026-10-16T15:00:11","slug":"cafe-restaurant-manali-kasol-licences-gst","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/cafe-restaurant-manali-kasol-licences-gst\/","title":{"rendered":"Opening a Caf\u00e9 or Restaurant in Manali or Kasol: Licences, GST and Accounts Checklist"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>To open a caf\u00e9 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.<\/strong> 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.<\/p>\n<h2 class=\"wp-block-heading\">Step 1: the premises<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>Leasing in a town:<\/strong> 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.<\/li>\n<li><strong>Buying, or leasing in a village:<\/strong> if you are not a Himachali agriculturist, read our <a href=\"https:\/\/www.taxaj.com\/learn\/section-118-himachal-pradesh-land-permission\/\" target=\"_blank\" rel=\"noopener\">section 118 guide<\/a> first. A caf\u00e9 built on land that was never cleared can be lost along with the building.<\/li>\n<li><strong>Building use:<\/strong> check that the building is approved for commercial use under the local planning rules before you spend on the fit-out.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Step 2: the business structure<\/h2>\n<p class=\"wp-block-paragraph\">Most single caf\u00e9s start as a proprietorship. Partners who are putting in money together are better off as an <a href=\"https:\/\/www.taxaj.com\/limited-liability-partnership-registration-process\" target=\"_blank\" rel=\"noopener\">LLP<\/a> or a <a href=\"https:\/\/www.taxaj.com\/private-limited-company\" target=\"_blank\" rel=\"noopener\">private limited company<\/a>, which keeps each partner&#8217;s share and liability clear when the season goes badly. A foreign national cannot run a caf\u00e9 in India on a tourist visa, and putting the business in a local friend&#8217;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.<\/p>\n<h2 class=\"wp-block-heading\">Step 3: the licences<\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Licence or registration<\/th>\n<th>Who needs it<\/th>\n<th>From whom<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>FSSAI registration<\/td>\n<td>Every food business with turnover up to \u20b912 lakh a year<\/td>\n<td>FSSAI (FoSCoS portal)<\/td>\n<\/tr>\n<tr>\n<td>FSSAI state licence<\/td>\n<td>Turnover above \u20b912 lakh a year<\/td>\n<td>FSSAI (FoSCoS portal)<\/td>\n<\/tr>\n<tr>\n<td>Trade licence or NOC<\/td>\n<td>Every eating place<\/td>\n<td>Municipal Council in Manali town; gram panchayat in villages such as Kasol or Vashisht<\/td>\n<\/tr>\n<tr>\n<td>Shops and establishments registration<\/td>\n<td>Any caf\u00e9 with staff<\/td>\n<td>HP Labour Department<\/td>\n<\/tr>\n<tr>\n<td>Fire NOC<\/td>\n<td>Larger premises and those with gas banks or many covers<\/td>\n<td>HP Fire Services<\/td>\n<\/tr>\n<tr>\n<td>Consent to establish and operate<\/td>\n<td>Depending on size, kitchen and effluent<\/td>\n<td>HP State Pollution Control Board<\/td>\n<\/tr>\n<tr>\n<td>Music licences<\/td>\n<td>Playing recorded music to customers<\/td>\n<td>PPL and IPRS<\/td>\n<\/tr>\n<tr>\n<td>Bar licence<\/td>\n<td>Serving liquor<\/td>\n<td>HP State Taxes and Excise Department<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p class=\"wp-block-paragraph\">Apply for FSSAI first: it is quick, and the other offices often ask for it. Put the FSSAI number on your menu and bills.<\/p>\n<h2 class=\"wp-block-heading\">Step 4: GST<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>When to register:<\/strong> once turnover crosses \u20b920 lakh in a year. Most valley caf\u00e9s cross it in their first full season.<\/li>\n<li><strong>Rate:<\/strong> a standalone caf\u00e9 or restaurant charges 5% with no input tax credit. A restaurant inside a hotel that is a &#8220;specified premises&#8221; charges 18% with credit; see our <a href=\"https:\/\/www.taxaj.com\/learn\/gst-manali-hotels-homestays\/\" target=\"_blank\" rel=\"noopener\">GST guide for Manali hotels and homestays<\/a>.<\/li>\n<li><strong>Composition scheme:<\/strong> restaurants with turnover up to \u20b91.5 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.<\/li>\n<li><strong>Swiggy and Zomato orders:<\/strong> 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.<\/li>\n<li><strong>Returns:<\/strong> file every month or quarter, including the off-season months.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Step 5: staff, books and income tax<\/h2>\n<ul class=\"wp-block-list\">\n<li>ESI applies from 10 employees and PF from 20. Seasonal staff count while they are on the roll.<\/li>\n<li>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.<\/li>\n<li>Your UPI, card and app settlements show up in your AIS. File the income tax return on time and make sure the turnover matches.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">The order that saves money<\/h2>\n<ol class=\"wp-block-list\">\n<li>Check the land or building and the lease or section 118 position.<\/li>\n<li>Choose the structure and open a current account.<\/li>\n<li>Apply for FSSAI, then the trade licence or panchayat NOC and labour registration.<\/li>\n<li>Fire, pollution and music licences as your size and plans require.<\/li>\n<li>GST registration before you cross \u20b920 lakh, or straight away if you sell on Swiggy and Zomato or want to open a bar.<\/li>\n<li>Bar licence last, once everything else is in place.<\/li>\n<\/ol>\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n<h3 class=\"wp-block-heading\">Do I need an FSSAI licence for a small caf\u00e9 in Kasol?<\/h3>\n<p class=\"wp-block-paragraph\">Yes. Every food business needs at least FSSAI registration. Above \u20b912 lakh turnover a year you need an FSSAI state licence instead.<\/p>\n<h3 class=\"wp-block-heading\">What is the GST on caf\u00e9 food in Manali?<\/h3>\n<p class=\"wp-block-paragraph\">5% without input tax credit for a standalone caf\u00e9 or restaurant. Restaurants inside a hotel that counts as a specified premises charge 18% with credit.<\/p>\n<h3 class=\"wp-block-heading\">Can a caf\u00e9 in Himachal opt for the composition scheme?<\/h3>\n<p class=\"wp-block-paragraph\">Yes, if its turnover is up to \u20b91.5 crore. It pays 5% of turnover, files quarterly, and cannot charge GST to customers.<\/p>\n<h3 class=\"wp-block-heading\">Can I open a caf\u00e9 in Manali if I am not from Himachal?<\/h3>\n<p class=\"wp-block-paragraph\">Yes. Leasing premises in a town is the simplest route. Buying land or leasing in a village needs section 118 permission first.<\/p>\n<h3 class=\"wp-block-heading\">Do I need a music licence to play songs in my caf\u00e9?<\/h3>\n<p class=\"wp-block-paragraph\">Playing recorded music to customers is a public performance, which needs licences from the bodies that hold those rights, usually PPL and IPRS.<\/p>\n<h2 class=\"wp-block-heading\">Open with the paperwork done<\/h2>\n<p class=\"wp-block-paragraph\">TAXAJ handles <a href=\"https:\/\/www.taxaj.com\/fssai-food-license-apply\" target=\"_blank\" rel=\"noopener\">FSSAI licences<\/a>, <a href=\"https:\/\/www.taxaj.com\/gst-registration\" target=\"_blank\" rel=\"noopener\">GST registration<\/a>, <a href=\"https:\/\/www.taxaj.com\/phonographic-performance-limited\" target=\"_blank\" rel=\"noopener\">music licences<\/a> and the books for caf\u00e9s and restaurants across the Kullu valley. See our <a href=\"https:\/\/www.taxaj.com\/food-business-start-manage\" target=\"_blank\" rel=\"noopener\">food business services<\/a>, or talk to our <a href=\"https:\/\/www.taxaj.com\/ca-in-manali\" target=\"_blank\" rel=\"noopener\">Manali team<\/a>.<\/p>\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/wa.me\/918802912345?text=I%20am%20in%20Himachal%20and%20want%20to%20open%20a%20cafe\" target=\"_blank\" rel=\"noopener\">WhatsApp our Himachal team<\/a><\/div>\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+918802812345\">Call 88028 12345<\/a><\/div>\n<\/div>\n<p class=\"has-small-font-size wp-block-paragraph\"><em>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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Checklist for opening a caf\u00e9 or restaurant in Manali, Kasol and the Kullu valley: premises and section 118, FSSAI, trade licence, fire and pollution consent, music and bar licences, GST and income tax.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[2,9],"tags":[],"class_list":["post-90747","post","type-post","status-publish","format-standard","hentry","category-launch-business","category-licenses-registration"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=90747"}],"version-history":[{"count":0,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90747\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=90747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=90747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=90747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}