Gst rate for restaurants having t/o > 1.50 cr.

remain same

I think Turnover is Still 1 Crore for Composite Scheme. 1.5 cr is recommended not yet notified 

It means there is no threshold limit for restaurants because GST rate will be the same with or without the scheme..??

Restaurant service providers are eligible for composition if T/O is below INR 1.5 crores subject to condition that No ITC, cannot collect taxes from customers, no inter-state procurements.

Where he has not opted for composition, then he shall be liable to pay GST at applicable rates. However, in this scenario, he can collect taxes from customer and remit to ex-chequer.

The option adopted by the restaurant can be checked based on the invoice or bill of supply issued by him for the service. In case, he issues Bill of Supply, then it can be implied that he has opted for Composition scheme. Else, it can be implied that he has opted for Regular scheme. However, this can not be the sole criterion/ deciding factor.

The GST rates for restaurants with turnover more than 1.5 crore will be 18% (with ITC) and not 5% (without ITC). The rate will be 18% since restaurant is a service industry and the applicable rates for services under GST is 18%.

If the rate is kept at the same level i.e. 5% even after the dealer exits the composition scheme then it will be a loss to those restaurants who are under composition scheme. Since under composition scheme the restaurant will pay 5% on turnover from its own pocket, and if it converts to the regular scheme and the rate is kept at 5%, then the restaurant will collect the GST from the patrons and pay to the treasury. So, you see the dealer under composition scheme is under complete loss, and hence the rate for a restaurant regular dealer is 18% with ITC and not 5%.