Which tax is applicable on a small restaurant?

Confusion between 5 / 12 / 18 % GST on restaurants. Please, tell me which tax is applicable on a small restaurant?

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2 Answer(s)

1. If you have a restaurant having turnover of less than 75 lakh than you can opt composition scheme in which you cannot charge tax from customer. you have to pay to govt @ 5% from out of your own pocket and which you definitely charge from the customer in your price. Under composition scheme you can’t take ITC of your raw mat.

2. If you are opting for normal scheme, * If your restaurant having AC or serving liquor than you have to pay @ 18%. * If restaurant is non AC and not serving liquor than @ 12% Under normal scheme unlike composition scheme you will charge tax from customer in tax invoice and also eligible to take ITC on RM.

Answered on June 26, 2017.
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Thanks alot sir.

Answered on June 26, 2017.
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Your Answer

Gen GST