Composition or regular scheme in gst

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17 Points Posted on 13 July 2021
which type of registration (composition or regular) will be applicable for a restaurant business (who provides services n food to Zomato n swiggy ) along with come n dine services
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On 13 July 2021 at 18:45 Report
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This discussion clarifies whether a restaurant offering dine-in services and supplying food via Zomato/Swiggy should opt for the GST composition or regular scheme. The key factor is whether the e-commerce operator (like Zomato or Swiggy) is collecting Tax Collected at Source (TCS). If TCS is collected, the composition scheme is not applicable, and a regular registration is required. If TCS is not collected, the composition scheme may be an option, though the regular scheme offers more flexibility if profitability is high.

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Chartered Accountant
24588 Points Posted on 13 July 2021
Composition scheme
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On 13 July 2021 at 18:58
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GST Practitioner
55067 Points Posted on 13 July 2021
As per Notification 92/2020 CT amended the clause (d) by inserting "Services"
(d) he is not enaged in supply of goods or SERVICES through E-commerce operator who is required to collect TCS under section 52.

Thus if Zomoto or Swiggy is collecting is collecting TCS then you cannot opt for Composition Scheme.

Yes surely can opt Regular registration.
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On 13 July 2021 at 23:43
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STUDENT
1631 Points Posted on 14 July 2021
Check your business is through -Electronic Platform.
the answer is no -You can opt.
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On 14 July 2021 at 01:28
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GST Practitioner
55067 Points Posted on 15 July 2021
Dear Balamurali
It's Electronic commerce operator who is deducting TCS , in that case only you cannot opt for Composition scheme.
If TCS is not deducted then yes can opt for Composition scheme.
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On 15 July 2021 at 23:36
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6 Points Posted on 15 July 2021

Pankaj, can u tell me what I should opt or which one I will get in this case   regular or composition 

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On 15 July 2021 at 23:39
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GST Practitioner
55067 Points Posted on 16 July 2021

Neha Pal

it depend upon the profitability of business .If you have handsome profit margin then go for composition scheme.

moreover the business you dealing in of restaurant, cannot claim ITC , & reqular scheme the accounting compliances will increase.

(Note : you cannot opt composition if supply through E-commerce who is deducting TCS)

 

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On 16 July 2021 at 13:39
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M Com FCS LLB M-AIMA
14046 Points Posted on 16 July 2021

Yes in veiw of specific provisions you are not eligible for composition scheme if your e commerce operator is liable to deduct TCS.

Whether regular or composition (if eligible) tax rate is 5% in both cases without ITC. 

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On 16 July 2021 at 13:49

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