GST ON EXEMPT SUPPLY BY RESTAURANT

No. Regular regn person can sell any product.

As per Notification 46/2017 CT(R )
Restaurants without ITC, charge 5% Restaurants in hotel where room tariff is 7500/- or more , charge 18% with full ITC

So if you are regular dealer no need to charge 5% on Exempted supply.

In term of Notification 1/2018 CT amending notification 8/2017 CT onwards the composit dealer can supply
Tax payer supplying restaurant services & ., Manufacturers opted for Composition scheme cannot do Exempted supplies

Note : other than manufacturers & Restaurant service provider who is in Composition scheme can make Exempted supplies (Notification 1/2018. CT )