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%

[KASTURI SETHI]

As per legal definition of restaurant, you to pay 5% under composition scheme.

[YAGAY andSUN]

Only manufacturer under Composition Scheme are required to pay 1%.

[KASTURI SETHI]

---------- And the Querist is not a manufacturer. Even if he is a manufacturer of goods, rate will be 5% as he can not give up the tag of "Restaurant". The "Restaurant" makes him ineligible for 1% under Composition Scheme.

[DR.MARIAPPAN GOVINDARAJAN]

The views of Shri Sethi is correct.

AI Summary

Composition scheme rate treats a canteen at a theatre as a restaurant, making it ineligible for manufacturer rate. A canteen operating as a restaurant within a theatre is treated as a restaurant for GST composition purposes and therefore cannot claim the lower manufacturer composition rate; the manufacturer-specific composition rate is limited to eligible manufacturers while restaurant-characterized entities must follow the composition rate applicable to restaurants.