Hotel business GST Liability

This query is : Resolved

Mallikarjuna Reddy B (Querist)
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08 December 2025 Sir we are running hotel only restaurant services (food). Filing GST returns under composition. GST paying@5% without ITC. We need clarity as we are registered under composition, GST@6% needs to be paid or 5% GST. Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 December 2025 Restaurants under the GST composition scheme pay a fixed GST rate of 5% (2.5% CGST and 2.5% SGST) on their total turnover. This tax is paid by the restaurant owner out of their own pocket, as they are not allowed to collect GST from customers.
Come out of composition scheme and collect 5% from customers.

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