Gst on Bakery manufacturers and hostel mess

[Vikrant Kathale]

Hello All

I have a Bakery manufacturing unit which sells only products manufactured by us and also run a hostel mess

I have registered in GST under composition scheme

Kindly advice gst rates for above under composition scheme

Regards

[Rajagopalan Ranganathan]

sir,

As per Rule 7 of CGST Rules, 2017, "The category of registered persons, eligible for composition levy under section 10 and the provisions of this Chapter, specified in column (2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of the said Table:-

Sl. No.	Category of registered persons	Rate of tax
(1)	(2)	(3)
1.	Manufacturers, other than manufacturers of such goods as may be notified by the Government	1[half per cent. of the turnover in the State or Union territory]
2.	Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II, namely, supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.	two and a half per cent. of the turnover in the State or Union territory]
3.	Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter	3[half per cent. of the turnover of taxable supplies of goods in the State or Union territory]

[YAGAY and SUN]

We are of the same view.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of experts.

AI Summary

Composition scheme rates clarified for manufacturers and food suppliers under GST, distinguishing turnover based slab applicability.
Composition levy classifies registered persons into manufacturers, food/restaurant/service suppliers (including hostel mess supplies), and other eligible suppliers; each category pays a distinct turnover based composition tax rate as specified in the composition rules, with manufacturers and the residual goods supplier category subject to the lower manufacturer/goods rates and food/drink service suppliers subject to the higher food service composition rate.