GST ON RESTURANT SERVICES

if your turnover within 75/50 lakh then u can take composition dealer registration and u have to pay 5% tax on turnover.

In restaurant business inputs cost excluding renatls is about 35%, out of this many inputs are exempt

you will not get benefit of GST paid on inputs under composition scheme, even you will have to pay tax under RCM. so in case your premises is owned i.e you dont have to pay GST on rent , calculate your GST inputs, if your gst inputs are much below the monthly compliance cost for filing monthly returns under GST, go for composition scheme , dont collect any tax on your sales and pay tax @ 5% otherwise collect tax @ 18% (12% in case of NON-AC restaurant) on your sales, adjust it with inputs, pay balance tax and file monthly returns.

 

other formalities will depend upon your choice

for details read articles by CA Mithun Khatry at www.gstbible.com/blog

GST Rates


Rates

Goods

Services

0%

Food grains

Education

Cereals

Healthcare

Milk

Residential accommodation

Jaggery

Hotel/ Lodges with tariff below INR 1000

Common Salt

 

5%

Coal

Goods transport

Sugar

Rail tickets (other than sleeper class)

Tea & Coffee

Economy class air tickets

Drugs & Medicine

Cab aggregators

Edible Oil

Selling space for advertisements in print media

Indian Sweets

 

12%

Fruit Juices

Works contract

Vegetable Juices

Business Class air travel

Beverages containing milk

Telecom services

Bio-gas fuel

Financial services

Fertilizers

Restaurant services

18%

Capital goods

Hotel/ Lodges with tariff between INR 1000 and 5000

Industrial intermediaries

 

Hair Oil

 

Soap

 

Toothpaste

 

28%

Air conditioner, Refrigerators

Cinema tickets, Betting, Gambling,

 

Hotel/ Lodges with tariff above INR 5000

28% + Cess

Small cars (1% / 3% cess)

 

Luxury cars(15% cess)