Threshold limit for Restaurant
This query is : Resolved
08 February 2021
What is the threshold limit of turnover for restaurant to charge 5% GST with no ITC. Kindly share the notification if possible.
Also, if restaurant charges service charge then what will be the GST rates for food bill & Service Charge bill under no ITC
Also, if restaurant charges service charge then what will be the GST rates for food bill & Service Charge bill under no ITC
08 February 2021
No threshold limit for restaurant to charge 5% GST with no ITC.
Same 5% applicable for service charge.
Same 5% applicable for service charge.
08 February 2021
Dear Sir, there is no limit in threshold for declaring turnover of Restaurant @ 5%.
Kindly note that, if you are providing accommodation service for which tariff rate(i.e., without discount) exceeding 7,500 per day, then GST rate would be @ 18% with availing full ITC.
Assuming that, the services which you are referring are related to restaurant service only like accommodation or other related amenities, then it will be chargeable at 5% (i.e., it will be treated as naturally bundled service and will be chargeable at main component rate which is 5% in you case. If you artificially bundle the service, then the GST rate would be the rate of the item which is having highest GST rate.
Kindly note that, if you are providing accommodation service for which tariff rate(i.e., without discount) exceeding 7,500 per day, then GST rate would be @ 18% with availing full ITC.
Assuming that, the services which you are referring are related to restaurant service only like accommodation or other related amenities, then it will be chargeable at 5% (i.e., it will be treated as naturally bundled service and will be chargeable at main component rate which is 5% in you case. If you artificially bundle the service, then the GST rate would be the rate of the item which is having highest GST rate.
08 February 2021
Thank you for your feedback.
But in my query the other service charge is amount charged on total bill as a percentage of total food/ liquor & beverage bill.
Also as the same includes Dance floor, there is an entry fee charged & a percentage of entry fee is adjusted in the food bill as well.
Eg - couple entry fee - 1000/-, then total food bill along with liquor & other beverages is suppose Rs 3500/- (inclusive of service charge + GST @ 5% + VAT on liquor), then the client has to pay, Rs 1000/- as entry fee & Rs 3000/- towards food ( as 50% entry fee is adjusted in food bill)
So how the GST will be charged on the same & at what rates ?
But in my query the other service charge is amount charged on total bill as a percentage of total food/ liquor & beverage bill.
Also as the same includes Dance floor, there is an entry fee charged & a percentage of entry fee is adjusted in the food bill as well.
Eg - couple entry fee - 1000/-, then total food bill along with liquor & other beverages is suppose Rs 3500/- (inclusive of service charge + GST @ 5% + VAT on liquor), then the client has to pay, Rs 1000/- as entry fee & Rs 3000/- towards food ( as 50% entry fee is adjusted in food bill)
So how the GST will be charged on the same & at what rates ?
09 February 2021
Charge 18% GST including food for such services.
21 July 2023
What would be the status of a shop selling murgers prepared by themselves and sold to customers - both take away as well as to be consumed therein the shop. What would be the threshold limit for GST registeration and applicable rate. Can they opt for compositon ?
22 July 2023
5% GST applicable on such items.
Threshold limit for registration is 20 lacs.
For composition 6% tax applicable no benefit.
Threshold limit for registration is 20 lacs.
For composition 6% tax applicable no benefit.
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