Threshold limit for Restaurant

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Piyush (Querist)
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08 February 2021 What is the threshold limit of turnover for restaurant to charge 5% GST with no ITC. Kindly share the notification if possible.
Also, if restaurant charges service charge then what will be the GST rates for food bill & Service Charge bill under no ITC

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 February 2021 No threshold limit for restaurant to charge 5% GST with no ITC.
Same 5% applicable for service charge.

Nitheesh

Nitheesh (Expert)
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08 February 2021 Dear Sir, there is no limit in threshold for declaring turnover of Restaurant @ 5%.
Kindly note that, if you are providing accommodation service for which tariff rate(i.e., without discount) exceeding 7,500 per day, then GST rate would be @ 18% with availing full ITC.
Assuming that, the services which you are referring are related to restaurant service only like accommodation or other related amenities, then it will be chargeable at 5% (i.e., it will be treated as naturally bundled service and will be chargeable at main component rate which is 5% in you case. If you artificially bundle the service, then the GST rate would be the rate of the item which is having highest GST rate.

Piyush

Piyush (Querist)
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08 February 2021 Thank you for your feedback.

But in my query the other service charge is amount charged on total bill as a percentage of total food/ liquor & beverage bill.
Also as the same includes Dance floor, there is an entry fee charged & a percentage of entry fee is adjusted in the food bill as well.
Eg - couple entry fee - 1000/-, then total food bill along with liquor & other beverages is suppose Rs 3500/- (inclusive of service charge + GST @ 5% + VAT on liquor), then the client has to pay, Rs 1000/- as entry fee & Rs 3000/- towards food ( as 50% entry fee is adjusted in food bill)

So how the GST will be charged on the same & at what rates ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 February 2021 Charge 18% GST including food for such services.

KRIESHAN GROVERR

KRIESHAN GROVERR (Expert)
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21 July 2023 What would be the status of a shop selling murgers prepared by themselves and sold to customers - both take away as well as to be consumed therein the shop. What would be the threshold limit for GST registeration and applicable rate. Can they opt for compositon ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 July 2023 5% GST applicable on such items.
Threshold limit for registration is 20 lacs.
For composition 6% tax applicable no benefit.

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