For the little taxpayers to benefit, the GST Department brought out the composition theme initiative. It is an easy and comparatively hassle-free approach for GST Compliance for little taxpayers. Anyone will voluntarily take this theme says GST consultants in Chennai if they are available underneath the set pointers. Composition theme underneath GST is additionally out there for hotels and restaurants that come with bound conditions.
REGISTERING FOR COMPOSITION THEME BY RESTAURANTS:
As the turnover limit of choosing composition themes underneath GST is up to Rs. 1.5 CR, therefore any restaurant whose annual turnover is up to Rs. 1.5 crore is eligible to be registered underneath the GST Composition theme. Within the case of restaurants within the following states, restaurants with a turnover of up to Rs.75 lakhs is registered underneath the GST composition scheme:
- Arunachal Pradesh
- Himachal Pradesh
RESTAURANTS THAT CAN’T REGISTER AS COMPOSITE TAXPAYERS:
- A restaurant serving alcoholic liquor of any kind cannot take the composition theme.
- A restaurant having an area of business in several states.
- A restaurant supplies services through e-commerce operators like Zomato, Swiggy etc.
- A temporary or seasonal restaurant with Casual subject Person standing.
A restaurant producing any of the subsequent goods:
- Ice cream and alternative edible ice, whether or not or not containing cocoa
- Pan masala
- Tobacco and made tobacco substitutes
CONDITIONS FOR RESTAURANTS OPTING COMPOSITION SCHEME:
- Cannot collect GST from their customers nor will they issue a subject Tax invoice underneath GST
- Required to issue “Bill of Supply” mentioning “Composition subject Person” on constant
- Cannot claim Input reduction on their Purchases
- Cannot give inter-state offer. However, no restriction on receiving inter-state provides
- GST is collectible on a Reverse Charge basis just in case of purchase from an unregistered provider
- Cannot offer things exempted from GST
Same PAN can’t be accustomed to take completely different schemes. For example: If a restaurant owner has opted for the composition theme with one PAN number, constant PAN number can’t be used for alternative businesses with the regular theme.
All registered businesses with similar PAN number ought to take constant schemes. If the turnover of the restaurant exceeds Rs 1.5 large crore or seventy five Lakhs for mere states, the composition theme stands invalid. In this case, the restaurant service suppliers ought to pay and file taxes underneath the regular theme.
GST RATE FOR RESTAURANT SERVICES:
Restaurants going for a GST Composition theme are expected to pay GST at a concessional rate of 5% on the annual turnover while not benefitting from ITC. But wherever restaurants/catering services are provided in Hotels with tariff up to or higher than Rs. 7,500 this concessional rate shall not be out there
|BUSINESS TYPES||GST RATES|
|Railways/IRCTC||5% without ITC|
|Standalone Restaurants||5% without ITC|
|Standalone Outdoor Catering Services||5% without ITC|
|Restaurants within Hotels (where room tariff < Rs. 7500)||5% without ITC|
|Normal Outdoor catering within Hotels (where room tariff ≦ Rs. 7500)||5% without ITC|
|Restaurants within Hotels (where room tariff ≧ Rs. 7500)||18% with ITC|
|Normal Outdoor catering within Hotels (where room tariff ≧ Rs. 7500)||18% with ITC|
DIFFERENCES BETWEEN COMPOSITION SCHEME AND REGULAR SCHEME FOR RESTAURANTS AND HOTELS:
|PARTICULARS||REGULAR SCHEME||COMPOSITION SCHEME|
|GST Returns||GSTR-1 GSTR-3B GSTR-9 / GSTR-9C||GST CMP-08 (Quarterly from 1st April 2019)GSTR-4 – Annual (From FY 2019-20)Annual return in Form GSTR-9A. (Upto FY 2019-20)|
|Supply||Can supply within inter and intrastate and also through Swiggy and Zomato||Cannot supply within inter and can supply only intrastate and also cannot supply through Swiggy and Zomato|
|Tax collection||According to prescribed rates||Cannot collect GST from customers|
|Conditions||Anyone can choose regular scheme||In the case of North-Eastern states and Himachal Pradesh, A taxpayer whose turnover is below Rs 1.5 crore or Rs 75 lakh|
|Invoices||Regular tax GST invoice||Supply bill|
|GST Payments||Output and Input GST Tax on reverse charge||GST Payment has to be made since it cannot be collected from customers GST on supplies made.Tax on reverse charge|
|ITC||Depending upon the category credit of input tax is paid||Not eligible to receive ITC|
GST COME BACK FILING FOR RESTAURANTS UNITED NATIONS AGENCY TAKE COMPOSITION SCHEME:
THE REMUNERATOR HAS TO FILE THE SUBSEQUENT RETURNS:
- GST CMP-08 (Quarterly from first Apr 2019)
- GSTR-4 – Annual (From FY 2019-20)
- Annual come back in kind GSTR-9A. (Upto FY 2019-20)
IDENTIFICATION OF COMPOSITION THEME RESTAURANT:
Restaurants registered underneath the composition theme cannot issue regular GST invoice however need to issue a bill of offer. In a very Bill of an offer, the sole rate per amount, amount, and also the subject price is to be mentioned. Restaurants registered underneath the Composition theme should mention the words “composition subject person, not eligible to gather tax on supplies” on the bill of offer.
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