Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Resturant having 2 cr. turnover

CA. Ankit Garg (Chartered Accountant) (73 Points)

11 May 2018

I am not clear about those restaurant who are having turnover of more than 1.5 cr.

Are they compulsarily follow Composition scheme with 5% tax rate with no ITC

They can opt Regular scheme?

Reply
Follow
Share

8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 11 May 2018

Rates over restaurants remain same...... i.e. 5% without ITC (except starred hotels).........

But because of turnover limit, such resturants have to opt regular scheme.

3 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Upkar Singla (7 Points)
Replied 11 May 2018

thts if a restaurent opt composition then restaurent would be liable to pay tax @ 5 on overall turnover?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 11 May 2018

No. Only over Taxable supplies.....

CA. Ankit Garg (Chartered Accountant) (73 Points)
Replied 11 May 2018

So if i summarize,
If turnover is less than 1 Cr. => COMPOSITION SCHEME (Quarterly Returns) + 5% tax on Taxable Supplies + No ITC Allowed.
If Turnover is aboe 1 Cr => REGULAR SCHEME (Monthly Returns) + 5% tax on taxable Supplies + No ITC Allowed.

Is that Correct Sir??

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 11 May 2018

Correct ... that's position as on date.......... And in first option Composition is not mandatory.

One more difference is charging of GST.......... Composition dealer can only issue bill of supply, while regular dealer can issue tax invoice with GST charged extra.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA. Ankit Garg (Chartered Accountant) (73 Points)
Replied 11 May 2018

Thanks alot for sharing knowledge.