Sir, our company (Ltd.) has been receiving commercial rental income in Tamilnadu collecting GST 18% from the tenants (with no other business income as on date), now we wish to start a small hotel in Andhra Pradesh. Can we opt for composite scheme as our turnover may not cross 30 lakhs this year? Pls advice.....
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For composite scheme
Replies (15)
Composition scheme is applicable only to Restaurant service ( Not serving Alcohol )
A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.
Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover.
So, Yes you may opt for composition scheme.
No You cannot opt for composite secheme
as to your query the rental income is cover under services, & composit dealer cannot provide service other then restaurant Business
as to your query the rental income is cover under services, & composit dealer cannot provide service other then restaurant Business
Sir, we want to start a small restaurant business. under composite scheme. (we need a clarification if the rental income can still be 18% gst service)
You may show both businesses in different names in order to opt scheme.
NO mahesh, you cannot have any other source of income apart that of Hotel Income.
Thank you Ruchika ji. Please help me in what would be the GST % for a small scale restuarant when not under composite scheme.
Can we take Input Tax Credit of our purchases too.
All stand alone Restaurant not opting composition scheme will have to pay 5 % GST with no Input Tax Credit . plase conform with others also .
It will be 18% i.e 9% CGST and 9% SGST.
No input tax credit available.
Conditions and Restrictions for Composition Levy
- The person opting for the scheme must neither be a casual taxable person nor a non-resident taxable person.
- The goods held by him in stock on the appointed date must not be purchased from a place outside his state. The goods should therefore not be classified as:
- Interstate purchase
- Imported Goods
- Branch situated outside the State
- Agents or Principal situated outside the State
3. Where the taxpayers deal with unregistered person, tax must be paid or no stock must be held
4. Mandatory display of invoices of the words ” composition taxable person, not eligible to collect tax on supplies”
5. Mandatory display of the words “Composition Taxable Person” on every notice and signboard displayed at a prominent place.
6. He is not a manufacturer of such goods as may be notified by the Government during the preceding financial year.
As per above query and Discussions....
I agreed to Mr. Pankaj Rawat's view...
As per my view.,
The Querist can't opt composition scheme for his Restuarent busines based on his Rental Income
YES ITS 5% GST, WITH NO INPUT CREDIT
GST rate on restaurants to 12 per cent with input tax credit or at 5 per cent without input tax credit.
No you cannot take input in resutrant services
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