ALL ABOUT GST – RESTAURANTS

Particulars Regular Tax Payer Composite Tax Payer
Registration Limit Minimum Turnover   Rs 20 Lakhs Maximum Turnover Rs. 1.5 Cr
Territory of Business No restriction on supply Limited to Intra-State Supply
Input tax credit If GST output is 5% then No ITC allowed

If GST output is 18% then ITC is allowed

Restaurants cannot avail any ITC.
Compliance GSTR 1 & GSTR 3B GSTR 4
E commerce Can supply goods through e commerce Cannot supply goods through e commerce
Collection of taxes Collect taxes from customers – 5%/18% Cannot collect tax from customers

GST rates on restaurant services

Types of restaurants GST rate (Normal Scheme) GST Rate (Composition Scheme)
Standalone restaurants 5% without ITC 5% without ITC provided turnover for the whole FY does not exceeds 1.5 crore.
Standalone outdoor catering services 5% without ITC
Restaurants within hotels (where room tariff is less than Rs 7,500/-) 5% without ITC
Normal/composite outdoor catering within hotels (where room tariff is less than Rs 7,500/-) 5% without ITC
Restaurants within hotels (where room tariff is less than Rs 7,500/-) 12% with ITC
Restaurants within hotels (where room tariff is more than or equal to Rs 7,500) 18% with ITC
Normal/composite outdoor catering within hotels (where room tariff is more than or equal to Rs 7,500/-) 18% with ITC
Restaurant serving alcohol 18% with ITC

Author Bio

Qualification: CA in Practice
Company: Oswal & Heda Chartered Accountants
Location: Pune, Maharashtra, India
Member Since: 27 Mar 2021 | Total Posts: 14
Anubhav has over 5 years of professional experience in handling Audit & Assurance of various entities, Direct & Indirect Tax Advisory services, Project financing, Litigation Services, RERA, Preparation and Finalization of Income Tax returns, Monthly Compliance which includes GST, TDS and oth View Full Profile

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