MANUFACTRING OF FOOD ITEMS WITHOUT SITTING ARRANGEMENTS

GST MITRA (3 Points)

12 September 2021

Manufacturing of food items can be covered under 1% GST rate in composition sheme.
yes or no..

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6 Replies

Aniruddha Patra (150 Points)
Replied 12 September 2021

Yes 1% of turnover, except manufacturing of -
a) ice cream b) pan masala c) tobacco and its substitutes d) aerated water.

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CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 12 September 2021

See manufacturing of food items on contract basis would be covered under 1% of composite supply....

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CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 12 September 2021

But in case of supply of foods be sitting arrangements is provided or not.... It would be considered service and would be liable for tax @ 5%

GST MITRA (3 Points)
Replied 12 September 2021

Only Cooked and sale to another party for supplying.

CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 12 September 2021

According to me it would be leviable @ 5% since gst requires tax @ 5% on supply of food for human consumption...

CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 12 September 2021

Act does not have any reference of restaurant catering etc... So u shall go with 5% However u may consult before going ahead

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