composition scheme

[SHARAD ANADA]

Is outdoor catering service covered under Sch II 6(b) and eligible for Composition scheme U/s. 10?

AI Summary

Eligibility of Outdoor Catering for Composition Scheme Clarified; Distinctions with Composite Supply Noted Under Schedule II 6(b). A query was raised regarding the eligibility of outdoor catering services under Schedule II 6(b) for the Composition Scheme under Section 10 of the CGST Act, 2017. One respondent clarified that the Composition Scheme is applicable with a tax rate of 2.5% CGST and 2.5% SGST, but noted that the scheme is redundant since the general tax rate is the same. Another highlighted that Schedule II 6(b) pertains to Composite Supply, not the Composition Scheme, and these should not be confused. Further discussion pointed to the Supreme Court's observations distinguishing outdoor from indoor catering, supporting the eligibility of outdoor catering under the scheme.