Restaurants under GST

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252 Points Posted on 25 July 2020
dear sir mai ek restraunt kholna chahta hu mujhe aapse jaanna hai ki restraunt ki service pe kis rate se gst lagta hai present time par aur normal scheme aur composition scheme dono me se kaun si scheme best hai
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On 25 July 2020 at 13:45 Report
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Quick Summary
This discussion explores the Goods and Services Tax (GST) applicable to restaurants in India. It clarifies that restaurants typically fall under the 18% GST rate with Input Tax Credit (ITC) in the normal scheme, or a 5% GST rate without ITC under the composition scheme. The consensus leans towards the composition scheme being more beneficial for most restaurants, especially those serving unregistered customers, due to its simpler structure and lower rate. However, the suitability of the composition scheme might change if the establishment also offers lodging and accommodation.

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1102 Points Posted on 25 July 2020
In case of Restraunt -In Normal case rate is 18% with ITC
In Composition case rate is 5% without ITC
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On 25 July 2020 at 14:00
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252 Points Posted on 25 July 2020
Normal scheme aur composition scheme dono me kaun si scheme best hai
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On 25 July 2020 at 14:19
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Tax and Business Consultant
11616 Points Posted on 25 July 2020
According to me, composition scheme is best for restaurant, if you are mostly supplying to the unregistered person.
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On 25 July 2020 at 16:37
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1313 Points Posted on 25 July 2020
GST with 5% is more suitable for Restaurant service.
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On 25 July 2020 at 18:50
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Student
448 Points Posted on 26 July 2020
Mostly Restaurant services come under Composition scheme with GST rate @ 5% without ITC.

There is no such compulsion to opt for composition scheme.

As per sec 10 of CGST ACT 2017

A REGISTERED PERSON MAY OPT FOR COMPOSITION SCHEME PROVIDING RESTAURANT SERVICES SUBJECT TO CERTAIN CONDITIONS.

Thanks!
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On 26 July 2020 at 05:48
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1102 Points Posted on 26 July 2020
Acc to me, Composition scheme is beneficial for restaurants , as mostly restaurants are adopting this option
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On 26 July 2020 at 07:21
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3 Points Posted on 15 September 2020
But what if the owner is also providing lodging and accomodation facility ? rooms and restaurant together ?
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On 15 September 2020 at 10:15

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