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

    Mar 14, 2023 · Restaurants are required to pay GST at a concessional rate of 5% on the turnover under the composition scheme subject to the following restrictions. Turnover not to exceed Rs 1.5 Crores (Rs 1 Crore in case of special category States)

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

    Feb 9, 2024 · The rates applicable to the composition scheme dealer under GST tries to cover up all the above drawback. The restaurants opting under the composition scheme has to pay GST @ 5% as against 12% or 18%.

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

    5 days ago · Only manufacturers of goods, dealers, and restaurants (not serving alcohol) can opt for the composition scheme under Section 10. However, service providers can opt into a similar scheme for composition dealers notified by the CGST (Rate) notification no. 2/2019 dated 7th March 2019 where the total turnover limit is Rs.50 lakh.

  7. 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.

  8. taxguru.in › goods-and-service-tax › compositionComposition Scheme-GST Rate & Threshold Limit under GST Law

    Aug 29, 2020 · Currently, ‘Composition Scheme’ is available to those whose ‘ aggregate turnover’ in the previous financial year did not exceed Rs. 150 lakhs. For Special Category States ( Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura,) the limit is Rs 75 Lakh only. [See Notification No. 14/2019-Central Tax, dated 7-3-2019 ].

  9. taxguru.in › goods-and-service-tax › serviceService Providers under GST Composition Scheme – An Overview

    Aug 22, 2019 · 2. Conditions/Restrictions under composition scheme for service providers. (i) A service provider (or mixed supplier) registered under composition scheme should not be engaged in making any supply of goods which are not leviable to tax under the GST laws. [Section 10 (2) of CGST Act, 2017]. (ii) A service provider (or mixed supplier) registered ...