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Composition Scheme

02 October 2018

Can a dealer providing catering services on inter state basis avail for composition scheme if his tornover is below 1 cr. in preceding financial year. As sec 10 if cgst act 2017 only prohibits inter state movement of goods and not services.

Thankss!!

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171558 Points)
Replied 02 October 2018

But....... Caterers are not eligible for composition scheme even for intra-state supply.

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Amit Gupta (navi mumbai ) (152 Points)
Replied 02 October 2018

agree with @ dhirajlal

Rishabh Jindal (29 Points)
Replied 02 October 2018

As per para 6 of schedule 2, doesn't it involves supply of goods (as foods) and services which makes it composite supply and further sec 10 specifies such type of composite supplies.

venkat (article assistant) (77 Points)
Replied 02 October 2018

Person engaged in supply of services other than supplies referred to in clause (b) of paragraph 6 of schedule II cannot opt for composition levy. Catering service is a supply of service and not covered under the above said clause. Hence catering service provider is not eligible to opt for composition scheme.

Rishabh Jindal (29 Points)
Replied 02 October 2018

But it involves supply of food and service so why is it not covered under the aforesaid clause.

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ramakrishna (Professional Accountant ) (65 Points)
Replied 05 October 2018

Hi, is there any clarification ( if yes please provide the reference) that catering service is not eligible for composition scheme.

venkat (article assistant) (77 Points)
Replied 05 October 2018

In order no. 01/2017, it was stated that services referred to in clause (b) of paragraph 6 of schedule II as restaurant service and hence we can take stand that catering services are not included in the above said clause.

Rishabh Jindal (29 Points)
Replied 10 October 2018

The order does not specifically states services referred to in clause (b) of paragraph 6 of schedule II as restaurant service. It only specifies "clause (b) of paragraph 6". Please share the relevant extract.