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GST Service -Composition Query

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Heena Hora

Accounts & Admin Executive

25 Points Posted on 15 October 2020

Hi one of my client having catering business and supply of good....he wants to opt for composition ...6% will be on aggregate of supply of goods and service?

Replies (3)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) composition scheme for catering businesses. It confirms that the 6% GST rate (3% CGST + 3% SGST) applies to the aggregate value of both goods and services supplied. This option is available for mixed suppliers (goods and services) whose annual aggregate turnover did not exceed Rs. 50 lakhs in the previous financial year, as per Notification No. 2/2019 - Central Tax (Rate).

Shivam RC

Student

23693 Points Posted on 16 October 2020

6% GST ( 3% CGST + 3% SGST ) would be applicable on the aggregate value of supply of goods and services. As per Notification No. 2/2019 - Central Tax ( Rate ), dated 07th March 2019, Persons dealing in Exclusive Supply of Services or Supply of Goods and Services ( Mixed Supplier ) can opt to pay tax @ 6% of their Aggregate Turnover under Composition Scheme provided their Annual Aggregate Turnover does not exceeds Rs. 50 lakhs in the preceding FY.