Taxation on Restaurant omposition Restaurant

[NILESH PITALE]

Dear Expert

What is tax Rate for Composition Restaurant  ?

What is Tax rate  Other than Composition Restaurant, What will be ITC Position?

Please Guide

AI Summary

Composition restaurants pay 5% GST without ITC while regular restaurants face varied rates based on operations A taxpayer inquired about GST rates for composition restaurants versus regular restaurants and ITC eligibility. Experts clarified that composition restaurants pay 5% GST on turnover but cannot collect tax from customers or claim Input Tax Credit. Regular restaurants also pay 5% GST without ITC for standalone operations, or 18% with full ITC if operating within hotels above prescribed room tariffs or providing outdoor catering. The discussion concluded that the composition scheme is losing appeal due to ITC restrictions, limited inter-state sales, customer preferences for registered dealers, and increased compliance ease in regular schemes.