Are You Aware Of The GST Composition Scheme for Indian Restaurants?
Last Updated: February 10, 2023, 12:08 IST
Follow these steps to find out whether the restaurant is duly registered and has a proper GST number.
Sometimes these outlets indulge in fraudulent activities and cheat customers by taking the tax amount of both CGST and SGST even if they are not registered with the scheme.
A wise thought shared by our elders is that one should check and calculate the bill properly before making a payment. Certainly, we do check the amount but have you ever noticed the GST number written on the bill? If not, then here is why you should check and verify the restaurant’s GST number. After the implementation of GST, almost all the bill consists of CGST and SGST tax amount. Sometimes these outlets indulge in fraudulent activities and cheat customers by taking the tax amount of both CGST and SGST even if they are not registered with the scheme. Hence, to avoid such fraud, it is necessary for customers to be aware of their rights. Follow these steps to find out whether the restaurant is duly registered and has a proper GST number.
Step 1 – Visit the GST portal https://www.gst.gov.in/.
Step 2- Click on search taxpayer and search composition taxpayer.
Step 3- Enter the GST number written on the restaurant bill.
Step 4- The customer will know whether the restaurant comes under a regular GST payer or is a composite payer. If it is a composite pair then remember not to pay the GST amount levied on the bill. On the other hand, if the hotel is under regular payer then customers have to pay the GST amount.
Step 5- If the restaurant is forcibly charging GST in the bill, then you can visit- https://gstcouncil.gov.in/grievance-redressal-committee-grc.
For your grievance. If the restaurant is under composite pair it is because it is registered under GST Composition Scheme.
The GST composition scheme is a practical method of paying taxes that is offered particularly to small enterprises. Due to its primary advantages, it differs from the standard form of GST filing. A small firm must pay a fixed tax rate that fluctuates between 1% and 6% of its annual revenue as part of the composite plan. Small business owners often benefit from this facility’s relief.
Because of the lower tax liability, it favours small enterprises for example manufacturers typically pay about 1% and the restaurant sector pays 5% of the turnover.
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