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Composition scheme

Palak Rawal (Student CA FINAL) (388 Points)

22 March 2018

A person running a restaurant(Dhaba) also serves liquor can he get registered under composition scheme?

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8 Replies

Deepesh Khandelwal (51 Points)
Replied 22 March 2018

yes , because it will be a composite supply..

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Palak Rawal (Student CA FINAL) (388 Points)
Replied 22 March 2018

but gst is not applicable on alcohol.

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Deepesh Khandelwal (51 Points)
Replied 22 March 2018

main business is restaurant not alcohol..

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 22 March 2018

Yes it's Non Gst, u won't be chaging GST on the same (Alcohol for human consumption is out of GST)

Deepesh Khandelwal (51 Points)
Replied 22 March 2018

6.0 GST tax rate on Restaurant (Hotel, café, lounge,) business

The GST tax rate has been defined as per the different categories of the restaurant as explained in the beginning of the article which is as follows:

- Category 1: Supply of food/drinks in restaurant without AC and without license to serve liquor

GST Tax rate: 12% with full input tax credit (ITC)

Example: Road side café, Maggi outlets, Small dhaba’s on highways etc.

- Category 2: Supply of food/drinks in restaurant having license to serve liquor

GST Tax rate: 18% with full Input Tax Credit (ITC)

Example: Mybar, Lords of the Drinks, Bar etc.

- Category 3: Supply of food/drinks in restaurant having AC facility at anytime during the year.

GST Tax rate: 18% with full Input Tax Credit (ITC)

Example: McDonalds, KFC, Haldiram, Bikaner, Om sweets etc.

- Category 4: Supply of good/drinks in air conditioned restaurant in 5 star or above rated hotels

GST Tax rate: 28% with full Input Tax Credit (ITC)

Example: Hotel Taj palace, Maurya Shelton, Oberoye etc.

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Kiritsinh Dabhi (4 Points)
Replied 22 March 2018

alcohol ka bill direct isi ke name se laao...usme kamai mat karo aur gst composite tax na bharo

Uday (Article Assistant) (411 Points)
Replied 23 March 2018

Any person engaged in supplying goods which are not leviable to GST are not eligible for composition scheme as per Sec 10(2)

Hence restaurant supplying Liquor is not eligible for composition scheme

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 23 March 2018

dear deepesh ji

in restaurant services it's on one rate 5% without ITC ( both composit & regular tax payer)
Yes the resuratant in * hotel where room tariff is more the 7500/- the gst is at normal rate (ie. 12, 18) with full ITC