Zomato and Swiggy are two of India's most popular food delivery platforms. If you are a food business owner, you may wonder if you can list your business on these platforms without GST registration.
You can list your business on Zomato and Swiggy without GST registration. However, you need to keep a few things in mind.
If your annual turnover exceeds Rs. 40 Lakh, you must be GST registered to list your business on Zomato and Swiggy. This is because Zomato and Swiggy are required to collect GST on behalf of the government.
If your annual turnover is below Rs. 40 Lakh, you are not required to be GST registered to list your business on Zomato and Swiggy. However, consider registering for GST for several reasons.
However, before getting into the food delivery world, it’s essential to understand the registration requirements, particularly regarding Goods and Services Tax (GST) registration.
In this blog, we will address the question, "Can I list on Zomato without GST?" and outline the necessary steps to get your food business up and running on these platforms.
Listing on Zomato and Swiggy transforms customer interactions, showcasing such a move's strategic benefit.
With platforms like Zomato and Swiggy, your restaurant gains access to a significantly larger audience. Imagine your business being visible to millions of active users who might not have heard of you otherwise.
Zomato, for example, operates in 24 countries, meaning your restaurant has national and international exposure.
This extended reach isn't just about more eyes on your business; it's about tapping into the booming trend of online food ordering and turning that visibility into increased sales, ultimately boosting your revenue potential.
Convenience is a major reason customers prefer online food ordering.
Zomato and Swiggy offer user-friendly apps and websites that make browsing menus, placing orders, and tracking deliveries in real time a breeze.
Multiple payment options, such as online gateways and cash on delivery, ensure a smooth transaction experience.
The platforms' live updates and tracking features also add transparency, enhancing user satisfaction and making online ordering more enticing than traditional dining experiences.
Zomato and Swiggy are invaluable tools for building visibility and brand recognition for small and new food businesses.
Being listed ensures your business appears in relevant search results, making it easier for potential customers to find you.
Positive reviews and ratings on these platforms serve as social proof, enhancing your reputation and attracting more customers.
The marketing and promotional tools available can significantly bolster your business's presence in a competitive market, helping establish a recognizable brand and gaining customer trust.
Moreover, their reliable delivery services can streamline operations, improve customer satisfaction, and lead to positive reviews and repeat business.
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Getting your food business onto platforms like Zomato and Swiggy requires several key documents.
These documents not only ensure that you're legally compliant, but they also establish your business identity, making the registration process smooth and straightforward.
A Business PAN Card is a crucial requirement. It provides your business with a unique identity for tax purposes.
You need to provide this card to verify your business identity during the registration process on both Zomato and Swiggy.
It's important to ensure that the details on the PAN card match the details provided during registration. This avoids any potential discrepancies that could delay the process.
Next, you need an FSSAI License. The Food Safety and Standards Authority of India (FSSAI) license is non-negotiable for anyone in the food business.
It certifies that your business meets necessary food safety and hygiene standards.
The type of FSSAI license you need depends on your business's size and turnover — it could be a basic registration or a more comprehensive state or central license.
It is crucial to ensure this license is up-to-date for maintaining compliance and avoiding legal issues.
GST Registration is another important criterion. If your business's annual turnover exceeds Rs. 40 lakh (or Rs. 20 lakh in some states), registering for GST is mandatory.
You must present a copy of the GST registration certificate during the registration process with Zomato and Swiggy.
This compliance ensures your financial operations run smoothly and adhere to tax regulations.
Lastly, while not always explicitly listed, a Business Bank Account is essential. It's necessary for managing transactions, including receiving payments from the platforms.
For instance, Swiggy might require a cancelled cheque or a passbook to verify this account during registration.
Having a separate bank account for your business finances is vital for maintaining clarity in your financial records and ensuring financial hygiene.
Must read: Starting a Profitable Swiggy Cloud Kitchen Franchise in India: Steps, Cost and Fees
Understanding GST registration can be pivotal as you consider promoting your culinary creations to a wider audience through platforms like Zomato.
Let’s break down the GST requirements tailored for businesses looking to list themselves on Zomato.
A crucial point to grasp is that GST registration isn't just a bureaucratic formality; it's a legal requirement for businesses generating a turnover exceeding Rs. 40 lakh annually.
Simply put, if your food business is crossing this threshold, securing a GST registration isn't optional, it's a legal requisite.
The story changes a bit for smaller businesses. If your turnover is comfortably resting below the Rs. 40 lakh mark, you can breathe a sigh of relief. GST registration is optional for you to list on Zomato.
But, to stay on the right side of the law, you might consider the Composition Scheme. This scheme is a friend to small enterprises by simplifying tax compliance—you pay a fixed percentage of your turnover as GST.
However, this ease comes with a trade-off: you won’t be issuing tax invoices or claiming input tax credits.
Zomato's internal policies echo these statutory requirements. The platform seeks transparency and ensures businesses adhere to legal norms by requiring documents like the GST registration certificate during onboarding.
This is part of ensuring a level playing field where consumer trust is upheld and services are delivered seamlessly.
For food businesses with turnover below the Rs. 40 lakh cut-off, aligning with these regulations through voluntary GST registration can facilitate Zomato's documentation processes, ensuring a smoother onboarding experience.
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Registering your food business on platforms like Zomato and Swiggy can open up your restaurant to a whole new customer base. Here's a simplified guide to help you through the registration process for both platforms.
Head to the Zomato for Business website and find the 'Add your restaurant' option. Fill out your basic details to get started.
Prepare essential documents like your FSSAI license, PAN card, and GST certificate if applicable. This step is crucial for proving your ownership and legitimacy.
Upload your menu with accurate descriptions and pricing. This will lay the foundation for your online presence.
Zomato might verify your business location and kitchen setup, which could entail a quick visit from their representative.
After approval, you can start taking orders. Usually, this activation happens quickly, so be ready to serve new customers.
Understand to the Swiggy for Business website and fill out the required information to become a partner.
Similar to Zomato, have your FSSAI license and PAN card ready to ensure a smooth verification process.
Input your menu items and their prices on the Swiggy platform for customers to see.
Apart from document verification, Swiggy might send a representative to your location to check your kitchen setup.
Once verified, your business will be live on Swiggy, broadening your access to a larger audience of hungry customers.
Also read: Steps To Register For Cloud Kitchen Partnership With Swiggy
When setting up your food business, one of the major questions that arise is about the necessary legal documentation.
A trade license is often a crucial part of the equation, especially when registering on food delivery platforms like Zomato and Swiggy.
A trade license is essentially a permission issued by a municipal authority that allows you to conduct business in a specific area.
It ensures that your business abides by local safety and regulatory guidelines and isn't involved in any illegal activities.
Yes, a trade license is typically required alongside other essential certificates such as the FSSAI and GST certificates when you register your food business on platforms like Zomato and Swiggy.
These documents collectively assure that your business meets the necessary health, safety, and taxation standards.
It's important to note that trade license requirements can differ depending on regional policies.
Unique guidelines on whether a trade license is mandatory or how it is issued exist in different states and countries, often outlined by local government acts or economic departments.
For example, if you're operating in India, the Municipal Corporation in your state will have its specific rules and fee structures.
Similarly, in the UAE, the Department of Economic Development will have its conditions.
Always check the local regulations relevant to your business area to avoid any legal complications.
Understanding the cost structure is essential for restaurants considering listing on platforms like Zomato and Swiggy.
These platforms provide immense visibility and access to a wider customer base, but they also have expenses.
The most significant cost is the commission that these platforms charge on each order.
Zomato generally charges a commission ranging from 17% to 25%. Swiggy's structure is quite similar, with rates typically spanning from 15% to 25%.
It's important to account for these figures when setting your pricing strategies and estimating potential profits.
Apart from commission, there are additional fees that restaurants need to consider. Delivery charges can be a tricky aspect; they can be absorbed by the restaurant or transferred to customers in the form of added costs to the order, influencing your pricing strategy.
Another expense to keep in mind is the cost of packaging. It is vital to maintain food quality and presentation in an appealing format, which could involve investing in high-quality packaging material.
Additionally, both Zomato and Swiggy impose platform service fees, which were recently increased to Rs 6 per order in several cities.
These additional expenses can stack up and should be factored into your overall cost analysis.
While not mandatory, engaging in promotional activities on these platforms can be beneficial for gaining customer attention.
Options like paid ads or visibility boosts can significantly improve discoverability. However, these promotional features come with extra costs.
Participating in discounts or offers can also influence your profit margins, making careful financial planning essential. It is wise to evaluate the potential return on investment when considering such strategies.
Additionally, some restaurants explore influencer or affiliate programs to enhance visibility and customer engagement.
These may require a considerable initial outlay, but they can lead to long-term customer loyalty and brand recognition.
Listing your food business on platforms like Zomato and Swiggy can significantly enhance your visibility and sales potential. Understanding the registration requirements, especially regarding GST, is crucial for a smooth onboarding process.
If your turnover is below ₹40 lakh, you can register without GST, but consider the advantages of obtaining one for credibility and operational efficiency.
Following the outlined steps and optimizing your operations, you can successfully launch your food business in the competitive online delivery market.
If you are considering listing your business on Zomato and Swiggy, familiarize yourself with the requirements and tips outlined in this blog.
To start your journey right now, visit the Kouzina website and go through our franchise options if you're an entrepreneur hoping to get involved with a rapidly expanding, well-known cloud kitchen company!
