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

Composition scheme eligibility may be lost for franchise outlets where turnover is treated as part of the franchisor's registration.
Composition is available for food retailers as a trader or manufacturer at a concessional composition rate, subject to statutory conditions and a turnover eligibility threshold. A franchisee may be regarded as operating under the franchisor's identity so that the franchisee's turnover is aggregated with the franchisor's turnover; where turnover is aggregated and exceeds the eligibility threshold, the franchisee is not eligible for the composition scheme and the outlet may be included in the franchisor's GST registration.