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Tax rate

RAVI KUMAR (ACCOUNTANT) (366 Points)

06 February 2019

what is the tax rate for restaurant in composition scheme

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (170785 Points)
Replied 06 February 2019

2.5% (CGST)+ 2.5% (SGST) = 5%

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KAAMIL AHAMADH (ACCOUNTING/TAX CONSULTANCY AND ITR/GSTR FILING) (253 Points)
Replied 06 February 2019

Hi !

Restaurants are required to pay GST at a concessional rate of 5% on the turnover under Composition Scheme subject to following restrictions

Turnover not to exceed Rs 1.5 Crores (Rs 1 Crore in case of special category States)
Should not be engaged in any services other than restaurant (special exception carved out for services like interest and exempt services)

Restaurant cannot make inter-state outward supply of goods

Cannot supply any items exempt under GST.

They cannot supply goods through an e-commerce operator
Restaurants cannot avail any input tax credit

They cannot collect taxes from the customer

Regards
KAAMIL AHAMADH (AR-RAHMAN EFILING)

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