Is It Mandatory To Pay GST At All Restaurants? Know When To Pay And When Not
In July of 2017, while the nation was already having a heated debate on demonetisation, the government implemented the Goods and Services Tax ( GST). It is an indirect tax replacing numerous other indirect taxes, including services tax, VAT, and excise duty. Put otherwise, the provision of goods and services is subject to the Goods and Service Tax (GST). Every value addition is subject to the comprehensive, multi-stage, destination-based Goods and Services Tax Law in India.
Everything from grocery bills to cinema tickets to restaurant or hotel food costs is subject to GST. We provide this tax to the government through traders rather than paying it directly to the government. But does every place have the right to charge GST? Do you know that restaurants that are taking advantage of the GST Composition Scheme of the government cannot charge GST from the customer on the bill? Due to a lack of proper information and knowledge, these restaurants sometimes take advantage of our ignorance and we pay the GST.
The benefit of the composition scheme is given to reduce the tax burden on small traders. Businessmen adopting composition schemes cannot issue tax invoices. Because they do not have the right to collect tax from their customers. Instead, composition traders have to pay tax from their own pockets.
Entrepreneurs who do not conduct business with other states and have an annual turnover of less than Rs 1.50 crore are eligible to apply for the GST composition scheme. Following registration in the composition scheme, there is no requirement to provide deal receipts or file monthly returns. For a goods transaction, a mere 1 per cent tax needs to be paid. Businesses that provide services are subject to a 6% tax and businesses that operate non-alcohol restaurants a 5% tax.
