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GST On restaurant services

Pratik khilari (CA FINAL) (75 Points)

20 June 2019

Can anyone confirm wether for a restaurant service if,

Composition: no ITC , 5% tax from pocket
Regular scheme: no ITC, 5% tax from customers
Regular scheme: ITC available, 18% tax from customers

Is it correct??

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8 Replies

Anshuman Basu (account -GST) (1549 Points)
Replied 20 June 2019

yes but is a alcohol free restaurant

1 Like

Radhika Harsha (Chartered Accountant) (72 Points)
Replied 20 June 2019

in composition scheme you would be liable to pay gst at the rate of 5℅ and you cannot collect gst from customers.
regular scheme: you don't have option to choose between 5℅ without input tax credit and 18℅ with input tax credit
5℅ without ITC for restaurant services: where the restaurants declared value of accomodation is less than rs 7500
if the accomodation is more than 7500, for restaurant service gst has to be levied at 18% with Input tax credit

Shivam RC (Student) (23683 Points)
Replied 20 June 2019

Agree with Radhika Ma'am's view...

Regular Scheme Dealers in Restaurant Business does not have the option to choose between 5% GST Rate without ITC and 18% GST Rate with the benefit of ITC.

1 Like

CA Mayank A Jain (Chartered Accountant in Practice) (1016 Points)
Replied 20 June 2019

Yes i agree too.
better to go for normal scheme so that 5% can be collected from customer and not required to pay from pocket.

abhishek bardia (partner) (308 Points)
Replied 20 June 2019

regular scheme is only available if a restaurant forms a part of the hotel having accommodation charges more than 7500 otherwise all the restaurants will have to fall in 5% without ITC