TaxTMI 
TaxTMI 
Dear Expert
What is tax Rate for Composition Restaurant ?
What is Tax rate Other than Composition Restaurant, What will be ITC Position?
Please Guide
Taxation on Restaurant omposition Restaurant
28 Jun 2025 
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Composition Scheme for restaurants limits Input Tax Credit and collection rights, affecting competitiveness and tax treatment of supplies.
Taxation of restaurant services under GST distinguishes between restaurants opting for the Composition Scheme and those under the regular scheme. Composition taxpayers pay a fixed composition rate on turnover, cannot collect tax from customers, and are ineligible to claim Input Tax Credit. Regular-scheme restaurants may be subject to a lower rate without ITC for typical restaurant supplies, but supplies within specified hotel premises or certain catering services attract a higher rate with availability of ITC. (AI Summary)
Taxation of restaurant services under GST distinguishes between restaurants opting for the Composition Scheme and those under the regular scheme. Composition taxpayers pay a fixed composition rate on turnover, cannot collect tax from customers, and are ineligible to claim Input Tax Credit. Regular-scheme restaurants may be subject to a lower rate without ITC for typical restaurant supplies, but supplies within specified hotel premises or certain catering services attract a higher rate with availability of ITC. (AI Summary)