GST Composition Scheme for Restaurants – Conditions, Turnover, Return

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


Under this plan, a small business having turnover of less than 100 lakhs can enlist for this composition levy and can pay tax at an established set rate on the basis of their turnover.

Return Filling

Small taxpayers employed under this scheme need not to file Monthly GST Returns in addition to need not to pay GST regular monthly

Conditions for registration under GST Composition Scheme

  • The person participated in the supply of Food and Drinks (other than alcohols) is not running temporary or seasonal restaurant.
  • If the dining establishment procures items & services from an unregistered individual, then the restaurant will be accountable to pay GST on reverse charge basis.
  • Any individual engaged in the inter-state supply of goods can not choose GST Composition Scheme.
  • Composite Taxable Person (engaged in restaurant business) can not provide products through electronic ECommerce Operator.
  • Under the structure plan, the individual taken part in supply of food & beverages (restaurant business) is required to pay GST @ 5% i.e CGST 2.5% & SGST 2.5%.
  • Restaurants choosing GST Composition plan will need to submit GST Returns quarterly in GSTR-4.

Must Read —

  • GST Registration Consent Letter
  • How to Register and Update Digital Signature
  • GST Registration Formats
  • Registration Under GST
  • Documents Required for GST Registration