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  1. cleartax.in › s › gst-composition-scheme-restaurantsRestaurants Under GST Composition Scheme - ClearTax

    • GST Rates on Restaurant Bills (with effect from 01.10.2019) S No. Type of Restaurants. GST Rate 1 Railways/IRCTC. 5% without ITC 2 Standalone restaurants. 5% without ITC.
    • GST Composition Scheme Rules. Restaurants are required to pay GST at a concessional rate of 5% on the turnover under Composition Scheme subject to following restrictions.
    • Regular Tax Payer V/s Composition dealer. Particulars. Regular Tax Payer. Composite Tax Payer. Registration. Threshold limit – Rs. 20L. 1.5 Cr.
    • Identify Restaurant under Composition Scheme. Restaurants opting for the composition scheme must mention the words “composition taxable person, not eligible to collect tax on supplies” on the top of the bill of supply.

  2. cleartax.in › s › gst-composition-schemeGST Composition Scheme: Rules, Turnover Limit, Rate, Benefits

    • Who Can Opt For Composition Scheme
    • Who Cannot Opt For Composition Scheme
    • What Are The Conditions For Availing Composition Scheme?
    • How Can A Taxpayer Opt For Composition Scheme?
    • How Should A Composition Dealer Raise Bill?
    • What Are The GST Rates For A Composition Dealer?
    • How Should GST Payment Be Made by A Composition Dealer?
    • What Are The Returns to Be Filed by A Composition Dealer?
    • What Are The Advantages of Composition Scheme?
    • What Are The Disadvantages of Composition Scheme?

    A taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This amendment will be a...

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    The following people cannot opt for the scheme- 1. Manufacturer of ice cream, pan masala, or tobacco 2. A person making inter-state supplies 3. A casual taxable person or a non-resident taxable person

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    The following conditionsmust be satisfied in order to opt for composition scheme: 1. No Input Tax Credit can be claimed by a dealer opting for composition scheme 2. The dealer cannot supply goods not taxable under GST such as alcohol. 3. The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism 4. If a taxable ...

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    To opt for composition scheme a taxpayer has to file GST CMP-02 with the government. This can be done online by logging into the GST Portal. This intimation should be given at the beginning of every Financial Year by a dealer wanting to opt for Composition Scheme. Here is a step by step Guide to File CMP-02 on GST Portal.

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    A composition dealer cannot issue a tax invoice. This is because a composition dealer cannot charge tax from their customers. They need to pay tax out of their own pocket. Hence, the dealer has to issue a Bill of Supply.The dealer should also mention “composition taxable person, not eligible to collect tax on supplies” at the top of the Bill of Sup...

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    Following chart explains the rate of tax on turnover applicable for composition dealers : As per notification dated 01.01.2018, turnover in case of traders has been defined as ‘ Turnover of taxable supplies of goods’.

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    GST Payment has to be made out of pocket for the supplies made.The GST payment to be made by a composition dealer comprises of the following: 1. GST on supplies made. 2. Tax on reverse charge 3. Tax on purchase from an unregistered dealer* *Only on the specified categories of goods and services and well as the notified class of registered persons w...

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    A dealer is required to pay tax in a quarterly statement CMP-08by 18th of the month after the end of the quarter. Also, a return in form GSTR-4 has to be filed annually by 30th April of next financial year from FY 2019-20 onwards. GSTR-9A is an annual return to be filed by 31st December of the next financial year. It was waived off for FY 2017-18 a...

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    The following are the advantages of registering under composition scheme: 1. Lesser compliance (returns, maintaining books of record, issuance of invoices) 2. Limited tax liability 3. High liquidity as taxes are at a lower rate

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    Let us now see the disadvantages of registering under GST composition scheme: 1. A limited territory of business. The dealer is barred from carrying out inter-state transactions 2. No Input Tax Credit available to composition dealers 3. The taxpayer will not be eligible to supply non-taxable goods under GST such as alcohol and goods through an e-co...

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  3. irisgst.com › composition-scheme-under-gst-forComposition Scheme under GST for Restaurant and Hotel Services

    • Registering for Composition Scheme by Restaurants: As the turnover limit of opting for composition scheme under GST is upto Rs. 1.5 CR, hence any restaurant whose annual turnover is upto Rs.
    • Restaurants that cannot register as Composite Taxpayers: A restaurant serving alcoholic liquor of any form cannot opt for the composition scheme. A restaurant having a place of business in different states.
    • Conditions for Restaurants opting Composition Scheme: Cannot collect GST from their customers nor can they issue a taxable Tax invoice under GST. Required to issue “Bill of Supply” mentioning “Composition Taxable Person” on the same.
    • GST Rate for Restaurant Services: Restaurants opting for Composition Scheme under GST are required to pay GST at a concessional rate of 5% on the annual turnover without the benefit of ITC.

  4. cleartax.in › s › composition-scheme-under-gstComposition Scheme Under GST Explained - ClearTax

    4 days ago · Latest Updates on composition scheme. 6th February 2023. Composition taxable persons and those interested to opt into the scheme for FY 2023-24 can do so by submitting a declaration on the GST portal in Form CMP-02 by 31st March 2023. 5th July 2022.

  5. gsthero.com › gst-on-restaurant-services-hotelsGST on Restaurants & Hotels: Composition Scheme under GST

    Feb 9, 2024 · The restaurants opting under the composition scheme has to pay GST @ 5% as against 12% or 18%. The rate of GST payable under the normal scheme is much higher than the composition scheme. GST Return Filing. The second major point which tries to cover up the above drawback is the filing of GST return.

  6. economictimes.indiatimes.com › wealth › taxWhat is composition scheme of GST, who is eligible and how to ...

    Sep 18, 2023 · The composition scheme under GST requires businesses to file GST returns on quarterly and annual basis. This is different where monthly GST return filing is mandatory. "Only two forms are to be filled by businesses under composition scheme of GST. These are GSTR-4 (annually) and GST CMP-08 (quarterly)," says Sanjay Chhabria, CA & Director ...

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  8. taxguru.in › goods-and-service-tax › gst-compositionComprehensive Guide to GST Composition Scheme for Small ...

    Aug 5, 2023 · Understand the GST Composition Scheme, its advantages, drawbacks, eligibility criteria, and tax implications for small businesses. Your one-stop guide to simplified GST compliance.