Restaurant under 5% GST without ITC

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A restaurant owner operating under the 5% GST scheme without Input Tax Credit (ITC) has unexpectedly surpassed ₹1.5 crore in turnover. The key question is whether they can continue with this scheme for the current financial year. Advice suggests that if the business is registered under the composition scheme, it must be converted to the normal scheme. Otherwise, the current registration can remain unchanged.

Gopalakrishnan. S

Gopalakrishnan. S (Querist)

29 January 2023 Sir,

One of my friend is running a restaurant. He opted for 5% GST without availing ITC.
His turnover has crossed 1.5 crores in October 22 itself, but he noticed it now only.
Can he continue under the same scheme for this FY ? What should he do now ?
Pls. advice.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 January 2023 If the registration is under composition scheme, you need to convert it to normal scheme; otherwise he can continue it without any change..

Gopalakrishnan. S

Gopalakrishnan. S (Querist)

29 January 2023 Thank you very much Sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 January 2023 Most welcome.

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