Restraunt under in gst

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252 Points Posted on 23 August 2020
Dear sir main ek naya restraunt khol Raha hu aur main gst registration lena chahta hu main kis rate se gst pay karunga mere restraunt me fast food hai aur hukka hai

mere liye restraunt me normal aur composition scheme me kaun si scheme best rahegi
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On 23 August 2020 at 09:12 Report
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Quick Summary
This discussion explores the best GST scheme for a new restaurant offering fast food and hookah. It compares the normal scheme (18% GST with ITC) and the composition scheme (5% GST without ITC). For businesses primarily serving unregistered customers, the composition scheme is often more beneficial. However, if a significant portion of your business involves hookah, which attracts a high GST and cess, the normal scheme might be preferable to claim Input Tax Credit (ITC) on related purchases.

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Tax and Business Consultant
11616 Points Posted on 23 August 2020
In case of Restraunt -In Normal Scheme rate is 18% with ITC
In Composition scheme rate is 5% without ITC

As per my View, composition scheme is best / beneficial for restaurant, if you are mostly supplying to the unregistered person.
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On 23 August 2020 at 09:39
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252 Points Posted on 23 August 2020
Thanku sir
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On 23 August 2020 at 09:43
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T
405 Points Posted on 23 August 2020
In purchase of hookah there will be 28%gst +72% cess that is it is a specified tobacco product so if u take 5%scheme u will not be able to get ITC on all things whether it be hookah inputs or restaurant inputs I would say if hookah is supplied in very small quantity then take composition scheme but if it is large then take normal scheme for itc
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On 23 August 2020 at 10:08
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1313 Points Posted on 23 August 2020
In your case, the scheme of 5% GST is more beneficial.
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On 23 August 2020 at 17:29

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