Composition or regular and tax percentage

This discussion compares the composition and regular GST schemes for small hotel businesses selling food. The composition scheme offers a 5% tax rate on total food sales without input tax credit (ITC) and restricts interstate supply, with a turnover limit of 1.5 crore. The regular scheme allows interstate sales, ITC claims, and has no turnover limit, but requires charging GST to customers. For restaurants specifically, both schemes attract 5% GST without ITC, but only the regular scheme permits charging customers.