GST on Tea Stall
This query is : Resolved
18 September 2020
Please inform what is the GST rate on tea stall having turnover of 75 Lacs?
18 September 2020
5% WITHOUT ITC. HE CAN ALSO OPT FOR COMPOSITION SCHEME WHICH IS BEST SUITED IN THIS CASE, IN MY OPINION.
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28 November 2020
I have a commercial building, on which I collect Rs. 4000.00 Maintenance Charges, should I charge gst or not.While I have taken registration already for trading business.
Please share me your valuable opinion.
Please share me your valuable opinion.
27 July 2024
### GST on Tea Stall
**1. GST Rate on Tea Stall:**
- **Food and Beverage Services:** The sale of food and beverages, including tea, at a tea stall falls under the category of “restaurant services” under GST.
- **GST Rate:** For tea stalls and similar establishments, the applicable GST rate is **5%**. This is under the category of “restaurant services” which covers food and beverage services provided by restaurants and eateries.
**2. **Turnover Considerations:**
- **Threshold Limit:** For the purposes of GST, the turnover of Rs. 75 lakhs (or Rs. 1.5 crores for special category states) is relevant for determining whether a business needs to register for GST. Since your turnover is Rs. 75 lakhs, you are required to be registered for GST.
### GST on Maintenance Charges for Commercial Building
**1. GST on Maintenance Charges:**
- **Commercial Property:** Maintenance charges collected from tenants or occupants of a commercial property are subject to GST.
- **GST Rate:** Maintenance services provided to commercial properties fall under the category of “support services” and are subject to a GST rate of **18%**.
- **Applicability:** Since you are already registered for GST, you need to charge GST on the maintenance charges you collect. This applies irrespective of whether the maintenance charges are for common areas or specific maintenance services.
**2. **Registration Considerations:**
- **Existing Registration:** As you have a GST registration for your trading business, you are obligated to charge GST on all taxable supplies, including maintenance services, and comply with GST reporting requirements.
### **Summary:**
1. **Tea Stall:** GST rate of **5%** is applicable on the sale of food and beverages at the tea stall.
2. **Maintenance Charges:**
- **GST Rate:** **18%** GST is applicable on maintenance charges for a commercial building.
- **Collection and Compliance:** You must charge GST on these charges and comply with GST filing requirements.
### **References:**
- **GST on Restaurant Services:** Refer to Notification No. 11/2017-Central Tax (Rate) and other relevant GST notifications regarding food and beverage services.
- **GST on Maintenance Services:** Refer to Notification No. 12/2017-Central Tax (Rate) and other relevant GST notifications related to support services.
If you have further queries or need specific advice tailored to your situation, consulting with a GST professional or tax advisor is recommended.
**1. GST Rate on Tea Stall:**
- **Food and Beverage Services:** The sale of food and beverages, including tea, at a tea stall falls under the category of “restaurant services” under GST.
- **GST Rate:** For tea stalls and similar establishments, the applicable GST rate is **5%**. This is under the category of “restaurant services” which covers food and beverage services provided by restaurants and eateries.
**2. **Turnover Considerations:**
- **Threshold Limit:** For the purposes of GST, the turnover of Rs. 75 lakhs (or Rs. 1.5 crores for special category states) is relevant for determining whether a business needs to register for GST. Since your turnover is Rs. 75 lakhs, you are required to be registered for GST.
### GST on Maintenance Charges for Commercial Building
**1. GST on Maintenance Charges:**
- **Commercial Property:** Maintenance charges collected from tenants or occupants of a commercial property are subject to GST.
- **GST Rate:** Maintenance services provided to commercial properties fall under the category of “support services” and are subject to a GST rate of **18%**.
- **Applicability:** Since you are already registered for GST, you need to charge GST on the maintenance charges you collect. This applies irrespective of whether the maintenance charges are for common areas or specific maintenance services.
**2. **Registration Considerations:**
- **Existing Registration:** As you have a GST registration for your trading business, you are obligated to charge GST on all taxable supplies, including maintenance services, and comply with GST reporting requirements.
### **Summary:**
1. **Tea Stall:** GST rate of **5%** is applicable on the sale of food and beverages at the tea stall.
2. **Maintenance Charges:**
- **GST Rate:** **18%** GST is applicable on maintenance charges for a commercial building.
- **Collection and Compliance:** You must charge GST on these charges and comply with GST filing requirements.
### **References:**
- **GST on Restaurant Services:** Refer to Notification No. 11/2017-Central Tax (Rate) and other relevant GST notifications regarding food and beverage services.
- **GST on Maintenance Services:** Refer to Notification No. 12/2017-Central Tax (Rate) and other relevant GST notifications related to support services.
If you have further queries or need specific advice tailored to your situation, consulting with a GST professional or tax advisor is recommended.
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