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Restaurant Dealer - Composition scheme

11 June 2018

1) Can a restaurant dealer registered under Composition scheme issue a tax invoice & collect from the end users? Section under GST law?? All details for composition restaurant dealer??!

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7 Replies

satyanarayana edadasula (125 Points)
Replied 11 June 2018

U/s 31(3)(c)a restaurant dealer registered under Composition scheme issue a tax invoice & collect from the end users? Section under GST law?? All details for composition restaurant dealer??!

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Ravi SADhiyan (Practice) (4510 Points)
Replied 11 June 2018

Originally posted by : Mahavir Nahata
	1) Can a restaurant dealer registered under Composition scheme issue a tax invoice & collect from the end users? Section under GST law?? All details for composition restaurant dealer??!

No Under Composition Scheme Dealer Can't be charge in Invoice.

In case of food/restaurant services:5% (2.5% CGST+ 2.5% SGST) of the turnover
in the State/UT(i.e., in case of composite supply of service specified in Entry 6(b) of
Schedule II)

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Suriyakumar Shanmugavel (Auditor) (80 Points)
Replied 11 June 2018

No. not only restaurant dealers, anyone who opt for composition scheme can't collect tax from recipient or prepare tax invoice.

Vinod Babu (24196 Points)
Replied 11 June 2018

In composition levy-
* For trader and manufacturer, it is 1%(cgst 0.5%+sgst 0.5%.

* For Restaurant, it is 5%(cgst 2.5%+sgst 2.5%)
Gst to be paid on total taxable supplies.
From 1jan18 no gst on exempted supplies.

Composition dealer should not collect tax on outward supplies. They have to pay the gst amount from their own pocket.
Tax invoice should not issued instead issue invoice mentioning "Bill of supply"

Specifically composition levy is not eligible for any supplier of services other than the supply of restaurant services.
In your case, you have a hotel if there is a restaurant services only, then you can enjoy the composition levy but in case you have a Both restaurant service and Hotel lodging services both the service are under same name and same pan card then you can not opt for the composition scheme because hotel lodging business is not eligible to get under the composition scheme.

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