Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Restaurant GST Rate

13 July 2020

if a restaurant owner register in gst and issued a gst number in compensation scheme why govt charged 5 percent every quarter ? why govt cannot charged 1 percent on composition schme ?

Reply
Follow
Share

3 Replies

annu Goyal (1102 Points)
Replied 13 July 2020

As the restaurant owner is registered under composition scheme under GST, there is rate prescribe in sec. 10 of GST act i. e. 5%
1% scheme for trader and manufactures

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

MD FAIZAL (28 Points)
Replied 13 July 2020

Thanx

Shivam RC (Student) (23683 Points)
Replied 13 July 2020

GST Rate of 5% GST ( 2.5% CGST + 2.5% SGST ) is applicable for the Restaurant Service Providers who have opted for Composition Scheme under Section 10 of the CGST Act 2017

Section 10(1) of the CGST Act 2017 clearly provides the GST Rate applicable for Traders, Manufactures and Restaurant Service Providers ( not serving Alcohol ) as follows :

Manufactures : 1% on Turnover in State or UT.
Traders : 1% on Taxable Turnover in State or UT.
Food/Restaurant Service : 5% on Turnover in State/UT.

Since you fall in the third category ( Restaurant Service ), you have to pay GST @ 5% every quarter via CMP-08.

Hope you Understood !!!

Regards,
Shivam RC.

3 Like