Restaurant GST Rate

if a restaurant owner register in gst and issued a gst number in compensation scheme why govt charged 5 percent every quarter ? why govt cannot charged 1 percent on composition schme ?
Replies (3)
Quick Summary
This discussion clarifies the GST rate for restaurants operating under the composition scheme. It explains that restaurant service providers, unlike traders and manufacturers, are subject to a 5% GST rate on their turnover, as stipulated by Section 10 of the CGST Act 2017. This rate is payable quarterly via CMP-08.

As the restaurant owner is registered under composition scheme under GST, there is rate prescribe in sec. 10 of GST act i. e. 5%
1% scheme for trader and manufactures
Thanx
GST Rate of 5% GST ( 2.5% CGST + 2.5% SGST ) is applicable for the Restaurant Service Providers who have opted for Composition Scheme under Section 10 of the CGST Act 2017

Section 10(1) of the CGST Act 2017 clearly provides the GST Rate applicable for Traders, Manufactures and Restaurant Service Providers ( not serving Alcohol ) as follows :

Manufactures : 1% on Turnover in State or UT.
Traders : 1% on Taxable Turnover in State or UT.
Food/Restaurant Service : 5% on Turnover in State/UT.

Since you fall in the third category ( Restaurant Service ), you have to pay GST @ 5% every quarter via CMP-08.

Hope you Understood !!!

Regards,
Shivam RC.

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