SIR,
A PERSON START A BUSINESS FOR GOODS SALES MONTHLY 2 LAKHS TURNOVER HIS SALES AFTER ADJUSTMENT OF ITC PAID OR NIL,
NOW HE STARTS RESTAURANT HE WANTS TO PAY TAX 5% NON CLAIMED ITC .
HOW TO DO IN GST RETURN?
PLEASE
5 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 23 February 2024
Better to move the business with another registration (vertical).
MURALIDOSS
(INCOME TAX PRACTITIONER)
(1329 Points)
Replied 24 February 2024
Sir,
Can I change the scheme to composition and pay 5% tax for restaurant? Goods need to change or drop can?
Money Money
(413 Points)
Replied 24 February 2024
The GST composition scheme is a simplified tax regime for small businesses, especially restaurants, that allows them to pay a fixed rate of tax on their turnover instead of the regular GST rates. However, there are certain conditions and limitations for opting for this scheme. 1
One of the conditions is that the composition scheme is only available for intra-state supply of goods and services. This means that if you have any inter-state transactions, you cannot opt for this scheme. Another condition is that you cannot supply goods through an e-commerce platform, such as Amazon or Flipkart. 2
If you are eligible and want to change from the regular scheme to the composition scheme, you can do so by filing a declaration in Form GST CMP-02 on the GST portal before the beginning of the financial year. You also need to file a statement in Form ITC-03 to declare the details of the input tax credit that you have to reverse on your closing stock. 3
The GST rate for restaurants under the composition scheme is 5% (2.5% CGST and 2.5% SGST) of the turnover. This rate applies to both food and non-alcoholic beverages. However, you cannot charge GST from your customers or claim any input tax credit on your purchases. You also need to file a quarterly return in Form GST CMP-08 and an annual return in Form GSTR-4. 4
If you change to the composition scheme, you do not need to change or drop your goods, as long as they are taxable under GST and not exempt or zero-rated. However, you need to ensure that you comply with the conditions and restrictions of the scheme and pay the tax accordingly. 5
One of the conditions is that the composition scheme is only available for intra-state supply of goods and services. This means that if you have any inter-state transactions, you cannot opt for this scheme. Another condition is that you cannot supply goods through an e-commerce platform, such as Amazon or Flipkart. 2
If you are eligible and want to change from the regular scheme to the composition scheme, you can do so by filing a declaration in Form GST CMP-02 on the GST portal before the beginning of the financial year. You also need to file a statement in Form ITC-03 to declare the details of the input tax credit that you have to reverse on your closing stock. 3
The GST rate for restaurants under the composition scheme is 5% (2.5% CGST and 2.5% SGST) of the turnover. This rate applies to both food and non-alcoholic beverages. However, you cannot charge GST from your customers or claim any input tax credit on your purchases. You also need to file a quarterly return in Form GST CMP-08 and an annual return in Form GSTR-4. 4
If you change to the composition scheme, you do not need to change or drop your goods, as long as they are taxable under GST and not exempt or zero-rated. However, you need to ensure that you comply with the conditions and restrictions of the scheme and pay the tax accordingly. 5
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 24 February 2024
| Originally posted by : MURALIDOSS | ||
 |
Sir, Can I change the scheme to composition and pay 5% tax for restaurant? Goods need to change or drop can? |
 |
I can't understand this question...
But, As per my previous reply new registration is best and You can opt composition scheme for Restaurant.
sabyasachi mukherjee
(27574 Points)
Replied 24 February 2024
For restaurant composition scheme is best suited
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