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composition scheme on catering business


24 September 2017 Hi
Is GST Composition Scheme applicable on Catering Business?

Regards
Sunny Tayal

24 September 2017 Catering business comes under SAC Heading 9963

24 September 2017 Which is taxable @18% and is not allowed under composition.

24 September 2017 No not applicable. Composition scheme applicable to Restuarent business only. Not applicable your catering business.

25 September 2017 With due respect to views of professionals, my opinion on this subject differ and i would like to present counter view on the issue.
As per CGST Rules, following person can opt for composition scheme:
"Any person making supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration."
and pay tax at 5% if total turnover does not exceed 75 lakhs. Word Restaurant is not used anywhere specifically. Since Catering Service also include supply of goods for human consumption, composition scheme can be opted by you in my opinion if all other conditions for opting composition are satisfied.

25 September 2017 Dear Sumeet, CBEC has made it clear that in service sector composition is only applicable for restaraunts.

25 September 2017 both restaraunt and catering falls under SAC 9963. But there are sub sections to this SAC which need to be considered


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