TaxTMI 
TaxTMI 
Sir.can Bakery and Sweet Stall opt for composition scheme @ 1% tax if turnover is below 1.5 crores?
Composition scheme
01 Jun 2024 
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Composition scheme eligibility for food suppliers denied when supply constitutes composite food service under composite supply rules.
Eligibility for the composition scheme turns on whether supplies of food and beverages are supplies of goods or services forming a composite supply. If serving tea or coffee is made "by way of or as part of any service" for consideration, that activity is treated as a service under the composite supply rule and can render the trader ineligible for composition treatment, affecting applicable GST rate and input tax credit treatment. (AI Summary)
Eligibility for the composition scheme turns on whether supplies of food and beverages are supplies of goods or services forming a composite supply. If serving tea or coffee is made "by way of or as part of any service" for consideration, that activity is treated as a service under the composite supply rule and can render the trader ineligible for composition treatment, affecting applicable GST rate and input tax credit treatment. (AI Summary)