Rate of tax

[Ravikumar Doddi]

What is the rate of tax under composition wherein applicant running canteen at theatre, all inward purchase from local regd delaers only there is no cooking/manufacturing , is it 1% or 5%

AI Summary

Canteen in Theatre Qualifies as Restaurant, Faces 5% GST Under Composition Scheme; 1% Rate for Manufacturers Only. An individual inquired about the applicable Goods and Services Tax (GST) rate under the composition scheme for a canteen operating in a theatre, sourcing all supplies from local registered dealers without cooking or manufacturing. The consensus among respondents was that the canteen qualifies as a restaurant, thus subject to a 5% tax rate under the composition scheme. It was clarified that only manufacturers are eligible for a 1% rate, and the canteen's classification as a restaurant precludes it from this lower rate.