REGARDING GST COMPOSITON

[PREMNATH RAO]

Dear Sir,

Can a cake shop who is a franchise opt for composition scheme. Is there any condition for opting composition scheme.

Since cake comes under food can a cake retailer shop apply GST under composition scheme. What will be the rate of GST to be paid under composition.

Thanks,

With regards,

P M Rao

AI Summary

Cake Shop Franchise Likely Ineligible for GST Composition Scheme Due to Combined Turnover Exceeding 1.50 Crore Limit A query was raised regarding whether a cake shop franchise can opt for the GST Composition Scheme. The response clarified that while there is no restriction on cakes as food items under the Composition Scheme, the franchisee's turnover would be combined with the franchisor's, likely exceeding the 1.50 crore threshold. This would make the franchisee ineligible for the Composition Scheme. Additionally, it was suggested that the franchisee's GST registration would typically be included under the franchisor's registration, and it is advisable to confirm this with the franchisor.