Composition scheme for service

only restaurant service is eligible

I know that...by why is govt no including small services in it

Because it will amount to revenue loss to the government. The option for composition to traders has been given only because when they buy goods from the wholeseller they pay tax which is not eligible for ITC. So it becomes the revenue of the government. But in case of service providers of them have very less inputs and input services and hence there will be loss to government if the service providers are allowed to composition scheme. 

Take example of rent from commerical buildings- if the service provider is given composition scheme he will pay only 1% instead of 18%. And in the form of inputs he has nothing through which government can make good the revenue loss.

Take example of a traders- when he makes purchases from a wholeseller he pays tax which is non inputable and hence the revenue loss is set off in that manner.

Agree with Mr Hemanth.

Only Manufacturers of goods, Dealers, and Restaurants (not serving alcohol) can opt for composition scheme.

I too agree...but now look at this ...from example.. photo copying...it is included in services though there is abt 70 perct inputs cost of paper..ink.. electric ity etc....
govt will any way get 12 or 18 Perct from this inputs....then this type of so many lines like beauty parlour etc are included vin servitude...I THINK IT IS HASSLE FOR SMALL BUSSINESS UNITS....

If composition scheme is brought for services providers government will have to give many exceptions/exculsions which will make the law more cumbersome and will cause many litigations also. Further you should apprecitate that in order to safeguard small business units government has given cap of 20 lakhs for GST registration.

I today's age 20 lakhs turn over even road side pan ka thelawala will do....

I have not come across such PAN walas. Your question was about why services have been excluded from composition scheme and I think I have answered you fairly. 

May be you can write a letter to GST council to consider your points and you may include this 20 lakhs PAN Wala Point in that. 

sorry if u found this example offensivd ..it was jst a way of saying ...
point is there nare many n services which carry hugh input cost yet are counted as pure service..that it