what is the threshold limit for restaurants as composition????
what should be the rate if crosses threshold limit??
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Quick Summary
This discussion clarifies GST rates for restaurants, particularly concerning the composition scheme. The threshold for the composition scheme is up to ₹1.5 crores. If this limit is exceeded, the regular GST scheme applies, with a tax rate of 18%. For those opting for the composition scheme, a 5% tax on sales is applicable without Input Tax Credit (ITC). Crucially, if a restaurant crosses the ₹1.5 crore threshold, they can still opt for the 5% GST rate without ITC, and there's no turnover limit for this option.