The government has introduced a composition levy under the GST law which provides a simple and easy taxing mechanism for small taxpayers to keep up with GST Compliance.

Under this GST composition scheme, a small business having a Turnover of less than 100 lakhs can enroll for this composition levy and can pay tax at a predetermined fixed rate on the basis of their turnover.

Small taxpayers enlisted under the GST composition scheme need not file monthly GST returns or pay monthly GST payments.

*Conditions for registration under GST Composition Scheme*

The person engaged in the supply of food and drinks (other than alcoholic drinks) is not running a temporary or a seasonal restaurant.

If the restaurant procures goods and services from an unregistered person, then the restaurant shall be liable to pay GST on a reverse charge basis.

Any person engaged in the inter-state supply of goods cannot opt GST composition scheme.

Composition taxable person (engaged in the restaurant business) cannot supply goods through an electronic commerce operator.

Under the Composition Scheme, the person engaged in supply of food and drinks (restaurant business) is required to pay GST @5% i.e., CGST 2.5% and SGST 2.5%.

Restaurants opting GST composition scheme will have to file GST Returns quarterly in Form GSTR-4.

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