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Restaurants under GST

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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7 Replies

annu Goyal (1102 Points)
Replied 25 July 2020

In case of Restraunt -In Normal case rate is 18% with ITC
In Composition case rate is 5% without ITC

1 Like

LAW STUDIO ASSOCIATES (252 Points)
Replied 25 July 2020

Normal scheme aur composition scheme dono me kaun si scheme best hai

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 25 July 2020

According to me, composition scheme is best for restaurant, if you are mostly supplying to the unregistered person.

Vijayprakash P (1313 Points)
Replied 25 July 2020

GST with 5% is more suitable for Restaurant service.

Maryam Hasan Meem (Student) (448 Points)
Replied 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!