Composition Scheme for Resorts

This discussion examines the applicability and benefits of the Composition Scheme for resorts under GST. While Notification 2/2019 central Tax (Rate) mentions a 6% GST rate for resorts under this scheme, it's generally not considered beneficial. This is primarily because resorts incur significant capital expenditure, and opting for the Composition Scheme prevents businesses from claiming input tax credit (ITC), making the Regular Scheme registration a more advantageous option.