GST Composition Scheme for Restaurants: The Government has introduced a composition levy under GST Law to simplify the taxing mechanism for small taxpayers to keep up with GST Compliance.


Under this scheme, a small business having 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.

Return Filling

Small taxpayers enlisted under this scheme need not to file Monthly GST Returns as well as need not to pay GST monthly

Conditions for registration under GST Composition Scheme

  • The person engaged in the supply of Food and Drinks (other than alcoholic drinks) is not running temporary or seasonal restaurant.
  • If the restaurant procures goods & services from an unregistered person, then the restaurant shall be liable to pay GST on reverse charge basis.
  • Any person engaged in the inter-state supply of goods can not opt GST Composition Scheme.
  • Composite Taxable Person (engaged in restaurant business) cannot supply goods through electronic ECommerce Operator.
  • Under the composition scheme, the person engaged in supply of food & drinks (restaurant business) is required to pay GST @5% i.e CGST 2.5% & SGST 2.5%.
  • Restaurants opting GST Composition scheme will have to file GST Returns quarterly in GSTR-4.

Must Read – 

Join the Discussion