problems related to composition scheme and theater exhibitor food & beverages sales

[npp suresh]

Dear sir, .

1) one of the my client was obtained gst certificate under composition scheme, he is selling exempted goods as well as taxable goods also, my doubt is what is the payable turnover in this case, he can pay 1% on taxable turnover or exempted & taxable turnover also. There is any changes in after 23rd council meeting before that ( I have known the aggregate turnover of composition dealer means:

1) Turnover of all taxable supplies

2) Turnover of Exempted Supplies

3) Exports made by all person with same PAN But Excludes: inward supplies under reverse charge.)

2) another one is my client running cinema theater as an exhibitor, he is supplying food and beverages in Non-Air conditioner Counter how much gst tax rate on food & beverages he can collect and pay the government. ( food and beverages both are same rate of tax or not)

Pl reply as early as possible sir.,

[ANITA BHADRA]

Dear Sir

The rates specified for composite turnover are only for taxable supplies made by the taxpayer. Exempted goods are to be excluded while calculating tax,.

[ANITA BHADRA]

a uniform 5 per cent GST will be charged on food bill in both air-conditioned and non-AC.

[npp suresh]

Dear Madam,

Thanq for u r reply,

1) I couldn't see what is the turnover of composite dealer have to pay tax in any act book (Aggregate turnover or Turnover) If aggregate turnover taken as registration under composition purpose i will agree with u madam.

2) I know after 23rd council meeting restaurant tax rate changed to 18% to 5% both Ac and Non Ac without ITC Except 5 star Hotels but my doubt is theater and amusement park etc., are also treated as like restaurant or not.

[Ganeshan Kalyani]

Answer to query 2- in my view 18% tax will be levied.

[Kishan Barai]

Respected Sir,

Theater and amusement park are not treated as a restaurant, moreover, if any restaurant agrees for 5% GST then it would not be eligible for ITC.

AI Summary

Composition scheme liability: tax due only on taxable turnover; classification of theater food sales affects applicable GST rate. Composition scheme tax is to be levied on a taxpayer's taxable supplies with exempt supplies excluded from the tax base; aggregate turnover remains relevant for composition registration. For food and beverage supplies by cinema exhibitors, respondents differ: some treat such supplies as falling under the reduced restaurant rate (with ineligibility for input tax credit if that rate is taken), while others maintain theatres and amusement parks are not restaurants and therefore may be subject to a higher GST rate.