GST Composition scheme for Bakery

[NIKITA JAIN]

An assessee having the bakery does the following activity manufacturing of eatables items like puffs, bread, bun, tea, coffee, etc. and also the activity of trading of bakery items like Biscuits, waffers, Cool drinks, Jam.

So whether he has to pay GST as Trader 1% or Manufacturing 2% or Restaurant & Food service 5%

[Raghunath Gadre]

It will be manufacturing activity and will attract 2% GST

[KASTURI SETHI]

I support the view of Sh.Raghnath Gadre.

[DR.MARIAPPAN GOVINDARAJAN]

In my view it would attract 5% as restaurant.

[Kishan Barai]

Its Manufacturing 2%

[npp suresh]

I support in view of Mr, MARIYAPPAN GOINDARAJAN because the assessee not doing only manufacturing he is playing dual role own products and other products selling in same premises so that assessee activity like restaurant activity. He is liable to pay 5% Tax.

[KASTURI SETHI]

In the query the activity is not of the nature of restaurant service. In para 1'of query, there is no mention of word, "Restaurant".

[npp suresh]

Hi....Sir,

In para'1 of query, the assessee has told his activity of trading of bakery items and also cool drinks

[npp suresh]

Sir,

undoubtedly the assessee has to come under Restaurant & Food services ( not covered under manufacture, trade sector)

thanq.

AI Summary

GST classification for bakery: whether treated as manufacture, trade, or restaurant affects composition levy under scheme. Whether a bakery outlet is classified for GST composition as Manufacturing, Trading, or Restaurant and Food Service depends on whether on site production of eatables is the predominant activity or whether the premises also provides ready to consume items and sells third party packaged goods, creating a mixed activity that may attract restaurant type composition treatment.